Plumbers, gas fitters and heating engineers are being targeted by the tax authorities

Under the plumbers’ tax safe plan (PTSP), plumbers, gas fitters, heating engineers and members of related trades, can come forward by 31 May to tell the HMRC of their intention to disclose what they owe.

If they make a full disclosure, most of the workers will face a low penalty rate of 10% but some will have to pay the maximum penalty rate of 20%. They have until 31 August to make their disclosure and arrange for payment to be made.

After this date, using information pulled together from various sources, HMRC will carry out targeted investigations aimed at those who have failed to come forward and make a full declaration. Substantial penalties or even criminal prosecution could follow for those who ignore the deadline.

The PTSP is the first initiative in a campaign focused on tradespeople. It is designed to make it easy for those in the plumbing industry to put their tax affairs in order.

Mike Wells, director of risk and intelligence at HMRC said: “Our aim is to make it as easy as possible for plumbers to come forward, make a full disclosure and benefit from a reduced penalty.

“We will be using various intelligence sources to target plumbers who have not declared their full income. I strongly urge any in this group who think they may owe tax on their income to get in touch with HMRC and get their tax affairs in order simply and on the best available terms.

“This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation with much higher penalties. The message is clear: contact us before we contact you.”