CIOT: HMRC’s plumbers campaign ratchets up the pressure

Tuesday, 16 August 2011 2:44 PM

HMRC’s plumbers campaign ratchets up the pressure

The Chartered Institute of Taxation (CIOT) has drawn attention to a significant escalation of HM Revenue and Customs’ (HMRC’s) attitude to tax defaulters. HMRC have announced that five plumbers have been arrested and around 600 are under civil investigation by for failing to pay the right amount of tax. This follows their ‘Plumbers Tax Safe Plan’ (PTSP) which provided an opportunity for plumbers and other taxpayers to come forward voluntarily and put their tax affairs in order.

Gary Ashford, who represents the CIOT on the Compliance Reform Forum, commented:

“This is further evidence that HMRC are entering a new phase with these disclosure campaigns. They have had limited success with the numbers coming forward in the recent medical and plumbers disclosure opportunities, so they are getting tough with those who didn’t register or disclose.

“People should not underestimate the amount of data that HMRC is holding. What we are now seeing is HMRC starting to use that information. The net is tightening on those who break the law.

“Anyone who is worried that they have been underpaying tax – whether deliberately or in error – should get professional advice without delay. There are a number of existing disclosure opportunities they may be able to take advantage of. Even if they are not covered by these, penalties will generally be less severe for taxpayers who come forward voluntarily to put their affairs in order with HMRC.

“Plumbers shouldn’t wait for a tap on the shoulder from the taxman before coming forward – and neither should anyone else. With HMRC targeting a five-fold increase in criminal prosecutions for evasion, the consequences of not clearing up tax irregularities could be grave.”

Notes to Editors

1. HMRC’s announcement was made in a press statement issued today: ‘Ghost’ plumbers arrested in tax raids.

2. The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.

The CIOT’s 15,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’.

- ENDS -

George Crozier
External Relations Manager

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