Builders could see their bank balances subside as they have moved to the top of the taxman’s targeted campaign list.
HMRC has announced that it will this year target tradespeople working in the home improvement market giving them an opportunity to come forward and declare unpaid tax. The campaign builds on previous initiatives aimed at plumbers and electricians, and will include hundreds of thousands of tradespeople in construction and building work such as roofing, window fitting, bricklaying, carpentry and joinery.
Mark Herson, Private Client Tax Directorat James Cowper comments: “HMRC’s similar campaign to secure payments from plumbers has so far generated close to £4 million, so it is no surprise they are utilising similar tactics with builders.
“HM Revenue and Customs are using increasingly sophisticated software to identify those who are not paying sufficient tax and the chances of going undetected are therefore diminishing.”
Mark adds: “Tradespeople who suspect their tax affairs are not completely up-to-date would be well-advised to take the disclosure opportunity. This could be the underdeclaration of income, overclaim of expenses or something unrelated to their business. We recommend that those who believe they might owe tax seek advice from an accountant or tax adviser before making a declaration. This way the bill for tax, interest and penalties can be kept to a minimum.”
