Pictured: Owen Kyffin, Tax Partner at Whitley Stimpson

Five plumbers have been arrested and around 600 are under civil investigation by HM Revenue & Customs (HMRC) for failing to pay the right amount of tax. Some of those involved owe up to £150,000.

More raids are taking place over the coming weeks in the Midlands, Yorkshire, Kent, Cambridgeshire, Tyne & Wear and South Wales.

HMRC wrote to 50,000 tradespeople in the plumbing industry, warning them to pay tax they owed or face big fines.  This was known as the Plumbers Tax Safe Plan (PTSP) that includes plumbers, gas fitters, heating engineers and members of associated trades.  Those who came forward before a May deadline were subject to fines of up to 20% of the tax owed.  They now have until 31 August to arrange for payment, so this first wave of arrests is aimed at those who did not register by 31 May 2011. None of these investigations involves any of the 600 people that came forward as part of the under the PTSP.  

Owen Kyffin, Tax Partner at Whitley Stimpson explains: "These arrests send a clear message that HMRC will take action against those who choose not to come forward and pay the tax they owe.  It is also clear that people who did register need to carefully consider their disclosure before 31 August 2011.  These arrests are just the start.  HMRC is considering hundreds of further cases for criminal investigation in the plumbing industry.  Previous campaigns have targeted doctors, dentists and more recently, restaurant owners and staff. HMRC are now planning a similar campaign for people that should be VAT registered and are not, the registration deadline for this is 30 September 2011."

Whitley Stimpson's specialist taxation department, led by Tax Partner Owen Kyffin, is able to assist with disclosures, defending investigations and disputes with HMRC.  If you have any concerns contact Owen for a confidential discussion on 01295 270200 or emai: owenk@whitleystimpson.co.uk.