HMRC have now commenced the ‘Plumbers Tax Safe Plan’ (PTSP).

This is another exercise by HMRC into certain industries and client’s tax affairs as they seem to think that we all need help from them in paying the correct amount of tax! The Plumbers Tax Safe Plan (PTSP) is designed for people working within the plumbing industry who have not told HMRC about all their income in the past and who now want to get back on track. It is intended to cover people who work (or worked) in the plumbing, heating or gas installation trades and this includes anyone who installs and repairs pipes and fixtures for water, drainage or gas systems in a building.

Advantages of PTSP

If taxpayers take advantage of the PTSP they can tell HMRC about any income that they haven’t previously told them about and they will pay a lower penalty.

Also if they find that they can’t afford to pay what they owe, they may be able to spread the payments depending on the circumstances.

It is likely that most people will only have to pay HMRC at most up to six tax years.

To take advantage of the PTSP taxpayers must:

1. Notify HMRC by 31 May 2011 of their intention to take part in the PTSP. This is a simple process and can be done online, by phone or by post. At this stage, HMRC only need to know that they will make a disclosure.
2. Once they have done this, they  must make the disclosure and pay HMRC what  they owe by 31 August 2011.

In preparation for the launch of the Plumbers Tax Safe Plan (PTSP) HMRC have been using their legal powers to obtain information about the plumbing industry and the people working in it. HMRC have also been carrying out internet research to increase their knowledge of people working within the industry.

After 31 May 2011, when the deadline for notifying has passed, HMRC will use this information to compare with the details that clients/taxpayers have shown on their tax returns. In addition, where they haven’t sent any tax returns, HMRC will compare information with what they know about them and will explore why they haven’t sent HMRC any returns.

HMRC will then target the taxpayers who they think have a disclosure to make, but who have not told HMRC they want to take part in the PTSP. This will include carrying out checks into their tax affairs or using their legal powers to get detailed information about their financial affairs and other undeclared income.

Where HMRC find that these taxpayers owe additional tax, they will charge them higher penalties than those offered under the PTSP. HMRC can charge penalties of up to 100 per cent of the additional tax. HMRC may also carry out a criminal investigation into any customers whose circumstances meet the criteria within their Criminal Investigation Policy.

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