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CIOT: Electricians face shock treatment over taxes

CIOT: Electricians face shock treatment over taxes

Electricians with dodgy connections in their tax affairs should come forward if they want to avoid getting a nasty shock from the taxman, says the Chartered Institute of Taxation (CIOT).

HM Revenue and Customs (HMRC) announced today that 50,000 letters are to start going out to electricians encouraging them to get their tax affairs in order under the Electricians Tax Safe Plan. Electricians who take advantage of this ‘disclosure opportunity’ will face a penalty rate of only 10-20 per cent of the tax owed, in addition to the tax itself, rather than the usual rate of up to 100 per cent. Those who don’t come forward could ultimately face criminal charges.

Gary Ashford, who represents the CIOT on HMRC’s Compliance Reform Forum, and is National Head of Tax Investigations and Dispute Resolution at RSM Tenon, commented:

“This campaign should spark some interest among electricians. HMRC’s efforts to identify those who are evading tax have become increasingly sophisticated. It is clear from the follow-up of the plumbers’ campaign, which has now led to 10 arrests, that they are determined to stem the flow of potential tax revenue into the hidden economy and meet their target of bringing in an extra £7 billion over the Parliament through initiatives to tackle tax avoidance, evasion and fraud.

“The advice to any electrician who is worried that they have been underpaying tax – whether deliberately or in error – is clear: Don’t blow a fuse – but don’t remain static either. Better to pay a nasty charge from your current account now rather than risk a shock through a criminal charge in a few months.

“Anyone who is worried that they have been underpaying tax – whether deliberately or in error, and whether they are connected to this campaign or not – should get plugged into professional advice without delay. Penalties will generally be at a lower rating for taxpayers who come forward voluntarily to put their affairs in order with HMRC.”

Notes to Editors

1. The Electricians Tax Safe Plan is the second part of a campaign aimed at tradespeople. The first, targeting plumbers and heating engineers, has so far led to 10 arrests and thousands of investigations. HMRC’s announcement can be read at http://www.hmrc.gov.uk/campaigns/index.htm

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 15,600 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’.

George Crozier
External Relations Manager

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The Chartered Institute of Taxation
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www.tax.org.uk

The Association of Taxation Technicians
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www.att.org.uk

Low Incomes Tax Reform Group – an initiative of the Chartered Institute of Taxation
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