Although targeted at the plumbing and heating industry, the Government’s new ‘Plumbers Tax Safe Plan’ could benefit all types of business owner, including any contractors whose tax affairs are not quite where they should be! According to the Chartered Institute of Taxation (CIOT), under this new plan, plumbers and members of certain associated trades who have tax to pay which they have not yet told HMRC about can come forward by May 31st, to tell the department of their intention to disclose what they owe. If they make a full disclosure, most face a low penalty rate of 10%, with a maximum of 20%.
Most importantly for contractors, HMRC is also saying that if anyone else voluntarily comes forward to put their tax affairs in order, they can expect broadly the same terms to those on offer through the Plumbers’ Plan. This appears to amount to a General Disclosure Opportunity of the kind the Institute has been calling for.
Commenting on this announcement, Chair of the CIOT’s Management of Taxes Sub-Committee Gary Ashford said, “Despite the focus on plumbers, HMRC have effectively announced a general disclosure facility open to anyone with tax irregularities. This is a positive move. A general arrangement available to all is sensible and something the CIOT has been calling for, for some time.”