A Harrogate tax expert has said the latest tax amnesty for those working in the plumbing trade marks a new trend by HM Revenue and Customes.
The taxman has announced an amnesty for plumbers and associated tradesmen ahead of a clampdown on those failing to fully declare their earnings.
A new tax disclosure agreement set up by HM Revenue and Customs will allow those in the profession to declare their unpaid taxes for the past five years. The penalties for those taking advantage of the amnesty will be ten per cent for careless errors and 20 per cent for deliberate defaulters.
Affected businesses have until May 31 to notify HMRC of their intention to participate in the scheme and will have until the end of August to pay the penalties.
Tom Roseff, Senior Tax Manager at Saffery Champness Chartered Accountants in Harrogate said the latest amnesty built on HMRC’s previous schemes for holders of offshore accounts and medical professionals and reflected a well considered strategy to target those sectors where there is a perception that taxes have been underpaid.
“It will be interesting to see how many take advantage of this latest amnesty arrangement,” he said.
“Depending on the results, it is likely that further sectors will be targeted in a similar way in the future.”