 Using the plumbers’ tax amnesty needs more than guesswork
03 March 2011: PKF Accountants & business advisers, has welcomed the new tax amnesty aimed at plumbers – the PLUMBERS TAX SAFE PLAN (PTSP) – but questions HM Revenue & Customs' (HMRC) approach over past records and use of estimates.
John Cassidy, tax investigation and dispute resolution partner at PKF, comments: "Anyone who has ever had work done on their home knows that plumbers and those working in related trades are not particularly forthcoming with paperwork. So, are such people who think they may have under declared income in past years going to be able to arrive at the right figure to disclose under this tax amnesty?"
Once plumbers and others have registered for the scheme (by the deadline of 31 May) they will need to work out how much tax has been underpaid in past years – possibly as far back as 1991/92 - and pay that tax plus interest and penalties by 31 August. Although, HMRC will accept estimates of past income where paperwork is incomplete, it will expect all estimates to be backed up by some evidence such as bank statements and copies of quotes to customers. Disclosures made under the amnesty will be reviewed and HMRC may ask individuals to justify the figures they have used to calculate what they owe.
John Cassidy says: "It is likely that many people who need to use the amnesty will have to reconstruct records based on limited information and this can be a very time consuming process even for tax professionals. However, anyone tempted to take short cuts could end up paying over the odds or just get in more trouble with HMRC and end up paying higher penalties if they under-declare again. Just like plumbing, this is a job for experts experienced in such work – anyone considering using the PTSP should seek advice from a tax investigations specialist."
– ends –
For further information, please contact:
Jane Murray, PR, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk
2. PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
3. PKF (UK) LLP is a member firm of the PKF International Limited network of legally independent firms. The PKF International Limited network has around 17,600 people operating in 120 countries around the world.
|