HMRC have issued a press release to announce that five plumbers have been arrested and around 600 are under civil investigation for failing to pay the right amount of tax.
The arrests and investigations have taken place following the “Plumbers Tax Safe Plan” (PTSP) which invited plumbers (and also gas fitters, heating engineers and members of associated trades) to put their tax affairs in order. HMRC state that some of those involved owe up to £150,000.
The press release clarifies that this is the start of co-ordinated action and more raids are expected to take place throughout August and September across the UK, including Yorkshire, Kent, Cambridgeshire, Tyne & Wear, Midlands and South Wales.
John Pointing, Assistant Director, HMRC Criminal Investigation, said:
“These raids and arrests of ‘ghosts’ - people who have not declared income from the work they do - are the culmination of months of work by HMRC.
“We provided a chance for those we have arrested, and the 600 we are investigating, to come forward voluntarily and put things right. These arrests send a clear message that HMRC will take action against those who choose not to come forward and pay the tax they owe.”
Mike Wells, Director HMRC Risk & Intelligence Service, said:
“These arrests are just the start. HMRC is considering hundreds of further cases for criminal investigation in the plumbing and medical professions. Some people may have thought we were bluffing when we said we have information that we will use to prosecute tax evasion.”
Although the guarantee of terms within the PTSP are no longer on offer, HMRC has left the PTSP disclosure route open for those in the plumbing industry who have unpaid tax to disclose but who have still not come forward.
30 September deadline for late VAT registration disclosures
It would be worth remembering that the current “disclosure opportunity” taking place is for those businesses that have not registered for VAT despite exceeding the registration thresholds. Similar consequences to those outlined above can be expected for those who don’t make a disclosure before the 30 September 2011 deadline. further details
Help protect your clients from tax return inaccuracy penalties with SWATUK’s Tax Risk Management Manual. For further details, email membership@the2020group.com.
