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HM Revenue & Customs has
announced a new tax amnesty for plumbers, gas fitters, heating engineers and
individuals in associated trades. Under this plan individuals may make a
voluntary declaration to the Revenue, by 31st May 2011, to advise
them of any undisclosed income which they have received in the past five years.
HMRC has decided to target plumbers
as they can be traced via Corgi and Gas Safe registration and in addition they
do a lot of cash work. A plumber in receipt of cash may not have declared all
of his income or registered for VAT. Similar points apply in respect of a
number of other trades.
A full declaration of income is
then required by 31st August and arrangements need to be out into
place for tax owing to be paid at that time. If the Revenue is satisfied that a
full disclosure has been made, a low penalty will be levied on unpaid tax.
After that date HMRC will carry
out targeted investigations, using information obtained from various sources,
into individuals who they believe have not disclosed their full income to them.
Under this regime much more substantial penalties will apply and even a
criminal prosecution could result.
If you believe that you have
undisclosed income and may benefit from this amnesty, please contact us.
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