Points of View


HMRC is continuing its targeted campaigns into tradespeople with the announcement of the Electricians Tax Safe Plan (ETSP).
The ETSP will begin in February 2012 and builds on HMRC’s plumbers’ campaign and gives an opportunity for electricians to come forward and declare unpaid tax. Considering that the Tax Safe Plan has so far generated an additional £1.98million, with more expected once the final disclosures are made, it is no surprise that HMRC are utilising similar tactics for their latest campaigns. The HMRC website defines an electrician or electrical fitter quite widely as ‘anyone who installs, maintains and tests electrical systems, equipment and appliances under stringent safety regulations.’
It remains to be seen if the Revenue holds information relating to these tradespeople as they did in the case of the Plumbers Tax Safe Plan where HMRC acquired information from Corgi and Gas Safe in order to identify potential unpaid tax liability. In addition, no further details have yet been confirmed as to any reduced penalty opportunities available.

Will other be tradespeople be targetted next e.g self-employed plasterers, bricklayers etc who are not paying tax through CIS.


The last two years has been a torrid time for the HMRC’s flagship National Insurance and PAYE Service (NPS).  Soon after its launch, vast numbers of incorrect code numbers were sent out and it automatically issued thousands of demands for tax that people had no idea they owed. Reacting to the criticism, HMRC has become proactive over tax codes in an attempt to stop the NPS receiving the blame for any more problems.
If your tax code isn’t correct, you won’t pay the right amount of tax on your salary.  However, getting your code right isn’t a simple matter because, as we’ve pointed out before, HMRC has to rely on data from previous years, e.g. tax returns, P11Ds etc.  However, this autumn they are going to send a newly designed Form SA252 to taxpayers they think are at risk of having incorrect codes.
The SA252′s will ask for details of changes to income etc., e.g. new benefits-in-kind (BiK), so that the code number can be amended to reflect these.  The trouble is that by the time the forms are issued we’ll be over half way through the tax year and the damage, (an under or overpayment of tax), will already have been done.  But it will, at least, mean that the Taxman has more up-to-date information to work out your tax code for 2012/13.
There’s no need to wait for Form SA252 to notify HMRC about changes which may affect your tax code, such as changing levels of BiK, increased pension contribution’s etc.  You can notify them at any time either in writing or by phone.  A phone call is the best option as they will usually make the amendments while you’re talking to them.

Leave a Reply