Fraudulent plumbers arrested

HMRC have issued a news release to confirm that five plumbers have been arrested and that approximately six hundred more are under civil investigation. HMRC have said that these arrests are the start of co-ordinated action and more raids are expected to take place across the UK in regions including Yorkshire, Kent, Cambridgeshire, Tyne & Wear, Midlands and South Wales.

The release of this information follows the ending of a disclosure opportunity aimed exclusively at the plumbing profession that offered an opportunity for plumbers to disclose undeclared income and bring their tax affairs up to date. The 'Plumbers Tax Safe Plan' (PTSP) was designed for people who work (or worked) in the plumbing, heating or gas installation trades including anyone who installed and repaired pipes and fixtures for water, drainage or gas systems in a building.

The PTSP offered an opportunity for people to disclose undeclared income and bring their tax affairs up to date. As a first step, qualifying taxpayers had to notify HMRC by 31 May 2011 of their intention to take part in the PTSP.

HMRC have confirmed that plumbing professionals still have the opportunity to come forward although the guarantee of terms within the PTSP are no longer on offer. HMRC's Director of Risk and Intelligence recently commented that HMRC 'have left the PTSP disclosure route open and I urge anyone with unpaid tax to use it to come forward and avoid potentially lengthy and costly investigations. The penalty they will pay will still be lower than when HMRC catches up with them.'