Plumbers Tax Safe Plan – Time for Action

Posted: 20th April 2011

The deadline for making a notification to HM Revenue and Customs (HMRC) under the Plumber’s Tax Safe Plan (a partial amnesty) expires on 31 May 2011.
Under the plan, workers in the plumbing and heating industry who have not made full disclosure of their earnings to HMRC can do so and receive a ‘light touch’ treatment. Full disclosure of any previously undeclared earnings must be made by 31 August.
Under the plan, there are three levels of neglect:
  • Genuine mistake – this can apply for up to 4 tax years (since 2007/8) and additional tax will be assessed without penalty.
  • Careless – this can be for up to 6 tax years (2005/6 onwards). In this case the penalty will be limited to 10 per cent; and
  • Deliberate – up to 20 years. In this case a penalty will be levied of 20 per cent.
HMRC receive a great deal of third party information about ‘moonlighting’ by plumbers and heating engineers, which is why this group has been singled out.
Time is running out for those eligible for this scheme to make a disclosure.
If you are concerned about your tax affairs, we can advise you.