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Electricians should pay any undisclosed tax they owe or face tough penalties, warns HM Revenue & Customs (HMRC) as it prepares to crack down on electricians who fail to pay what they owe.

HMRC Will Write to 50,000 Electricians

HMRC is writing to 50,000 electricians offering them a special time-limited opportunity called the Electricians’ Tax Safe Plan. The plan allows them to disclose any unpaid tax and pay up on the best possible terms. Those who take advantage of it will face much lower penalties than those who wait for HMRC to find them out.

The opportunity is open to anyone who installs, maintains or tests electrical systems, equipment and appliances. It applies to any unpaid tax regardless of how it came to be unpaid.

The Electricians’ Tax Safe Plan has two stages:

• From 14 February to 15 May 2012 electricians should come forward to tell HMRC they want to take part. They can do this by completing a notification form at How to Notify HMRC about Your Undisclosed Income. They can also call HMRC on 0845 601 5041 where a dedicated team is available to give information and advice.
• By 14 August 2012 those who have come forward must tell HMRC what they owe and pay the tax, interest and penalties due.

So What’s in it for Electricians?

The benefit of the Electricians’ Tax Safe Plan is that those who use it and declare what they owe by the deadline, will be offered a simple and straightforward way to put their tax affairs right. If they make a full disclosure, most face a penalty rate of only 10 per cent, with a maximum of 20 per cent.

After the deadline has passed, HMRC will use data from an extensive range of sources including from online advertising, industry bodies, trade directories, part P certificates, trade suppliers and tax records, to identify those who have failed to come forward and make a full declaration. HMRC uses advanced technological tools such as “web robot” software which helps it identify people who have failed to pay the right tax. Those identified face substantial penalties of up to 100% of the tax owed, or even criminal investigation.

Marian Wilson Head of HMRC Campaigns, said:

“Our aim is to make it easy for electricians to contact us, make a full disclosure of income and face a reduced penalty.

I urge trades people in this group who think they owe tax on their income, to get in touch and get their tax affairs in order, simply and on the best terms."

The Electricians’ Tax Safe Plan is the second part of a campaign aimed at tradespeople. The first push was aimed at plumbers and heating engineers. Nearly 600 people came forward under the plumbers’ campaign to “notify” HMRC of their intention to declare unpaid tax. Ten plumbers have been arrested, with more planned. In addition, over 1,000 civil cases have been prepared.

Other HMRC campaigns include: tutors and coaches; the VAT initiative, aimed at people and businesses operating at or above the VAT threshold but who have not registered to pay; medical professionals; as well as offshore campaigns aimed at those with undeclared offshore earnings.

Commenting on HMRC’s programme of campaigns, Marian Wilson said:

 “Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by everyone. Honest taxpayers have absolutely nothing to fear from this initiative. 

However, if you owe tax and don't come forward, it will be more expensive when HMRC catches up with you. It’s better to come to us before we come to you."

For further information on the Electricians' Tax Safe Plan go to Electricians' Tax Safe Plan Campaign