Electricians Tax Safe Plan (ETSP)

Electricians are the next targeted group to be offered a tax amnesty to declare unpaid taxes, following an announcement by HMRC, which is due to start in February 2012, aimed at bringing in revenues from tax avoidance and tax evasion. This tax evasion disclosure opportunity from the Inland Revenue (HMRC) will give those and other taxpayers the chance to deal with any tax evasion and tax avoidance issues potentially without the same intensity as a tax investigation. If taxpayers choose not to take part, their risk of a tax investigation increases significantly and some of these tax investigations will result in a tax prosecution.

With reference to our earlier article on 21 October 2011, “Online traders: the next tax amnesty”, HMRC have now announced an E-marketplace campaign which is expected to start in Spring of 2012, this will be targeted at those who are using e-marketplaces, such as E-bay, Gumtree and other online trading sites to buy and sell goods as a trade or business. HMRC have a computer software system which analyses trading transactions online which they are going to use to make targeted tax investigations.

Details

Under the Electricians Tax Safe Plan (ETSP), not only electricians, electrical fitters and associated trades who have income (from tax avoidance or tax evasion) which they have not yet told HM Revenue & Customs (HMRC) about, can take part in this plan – the same terms are offered to anyone who has undisclosed income, so long as are not already part of a tax investigation by HMRC. This latest campaign is set to start in February 2012, when the deadline for registration will be announced (usually 3 months after the start date) by which date you need to notify HMRC of your intention to disclose your tax irregularities. You will then have approximately a further 3 months to complete your tax investigation disclosure and submit this to HMRC with payment of the tax, interest and penalties. Like the Plumbers Tax Safe Plan (PTSP), most disclosers will be due to pay a low penalty of only 10%, others will pay a maximum of 20%, which is very attractive when compared to the normal maximum of 100%, in ordinary tax investigations.

Subsequent to receiving completed disclosures, HMRC advise that they will carry out targeted tax investigations aimed at those who have failed to come forward and make a full disclosure. They will also subject some of the disclosures that they feel are not necessarily complete by way of tax investigations. Those being targeted are expected to be those in the electrician trade. These tax investigations could result in substantial penalties or even criminal tax prosecution.

The benefits of taking part in the Electricians Tax safe Plan when making a full and complete disclosure of all tax irregularities are:
• A low penalty rate – (10 per cent for the majority of registrations, with a maximum rate of 20 per cent).
• A simple and straightforward way to put your tax affairs in order as an alternative to a full blown tax investigation.
• In some cases HMRC will only go back up to 5 years – instead of the maximum 20 years.

Please note late payment interest will also be due on any taxation duties unpaid.

Gilbert Tax can help you

For most people, the simple thought of having to deal with an Tax Investigation or disclosing tax evasion or tax fraud is so terrifying that they avoid the issue altogether and often find themselves in even greater tax investigation difficulties with higher bills than they need to. There is no need to let problems large or small with the HMRC escalate to the point where your quality of life and happiness suffer.

At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation and significant experience in dealing with tax amnesty schemes.

We are also skilled in negotiating with HMRC, relative to tax evasion, so as to avoid or limit financial penalties for the individuals or businesses who find themselves subject to a tax investigation having not taken part in this current scheme.
For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at

enquiries@gilberttax.co.uk.

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