
If you work in the Plumbing, Heating or Gas Installation trades, then the tax man is targeting you and you only have until 31st May to sign up to the Plumbers Tax Safe Plan.
HMRC declared earlier this year that it was targeting Plumbers who had paid too little tax either due to working cash in hand, or because they had made mistakes on their returns. They are giving those who register for the PTSP a chance to come clean about the past, make a payment to cover what hasn’t been declared, and then make a fresh start.
So, how much will you have to pay? Basically, between 3 and 6 years depending on if your undeclared income was deliberate or due to a mistake on your part. If you don’t sign up to the PTSP and HMRC investigate you at a later date you could face an investigation going back up to 20 years or a criminal investigation.
If you do decide to sign up to the PTSP you have to notify HMRC by 31st May 2011 but then have until 31st August 2011 to make your declaration. For more information see the HMRC website www.hmrc.gov.uk/trades-disclosure/index.htm
What are the alternatives? By using a CIS payment solution such as Simplify CIS, tax is deducted from earnings processed by your payment solution at source. Call us today on 01332 595959 for more details of how we can help with future payments or look at our website www.simplifycis.co.uk
You can almost hear a pin drop, as the entire contracting
world holds it’s collective breath waiting for the outcome of the review into
IR35.
At least it seems that the fact that a review is happening
has been universally welcomed, and most commentators would agree that it is
difficult to imagine anyone coming up with a more confusing set of rules than
we have in place now.