Tax clampdown: HMRC targets electricians for unpaid tax

HMRC is using a variety of intelligence sources to target electricians who have not declared their full income.

HM Revenue and Customs (HMRC) writing to 50,000 electricians warning them that they could face criminal charges if they do not get their tax affairs in order.

Electricians who take advantage of this ‘disclosure opportunity’ via the Electricians Tax Safe Plan, will face a penalty rate of only 10-20pc of the tax owed, in addition to the tax itself, rather than the usual rate of up to 100pc. Those who don’t come forward could face criminal charges, HMRC warned.

Marian Wilson, head of HMRC Campaigns, said: "Our aim is to make it easy for electricians to contact us, make a full disclosure of income and face a reduced penalty.

"We are using a variety of intelligence sources to target electricians who have not declared their full income. This is the same method we used for the plumbers' campaign, and that intelligence has led to 10 arrests and thousands of investigations, so we know it works. Using sophisticated software, this detailed information enables us to target those who should come forward and use the Electricians Tax Safe Plan.

The Electricians Tax Safe Plan is aimed at anyone who installs, maintains and tests electrical systems, equipment and appliances and covers any tax owed, for whatever reason.

This includes people who make mistakes in the amount of tax they pay even though they have taken reasonable care; those who are careless; or those who deliberately don't tell HMRC about something they should have paid tax on. Electricians can come forward at any time between 14 February and 15 May to tell HMRC they want to take part. Once they come forward, they have until 14 August to make their disclosure and arrange for payment. If they make a full disclosure, most face a penalty rate of only 10 per cent, with a maximum of 20 per cent.

Gary Ashford, national head of tax investigations at RSM Tenon, said: “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 that they are determined to stem the flow of potential tax revenue into the hidden economy."

The latest moves follows earlier clampdowns on the likes of doctors and dentists designed to encourage them to hand over any unpaid income tax.