Pictured: Owen Kyffin

Electricians could be in for a shock after becoming the focus of HM Revenue & Customs' latest tax crackdown.

The Electricians Tax Safe Plan (ETSP) will begin in February 2012 and gives an opportunity for electricians to come forward and declare unpaid tax. The HMRC website defines an electrician or electrical fitter quite widely as 'anyone who installs, maintains and tests electrical systems, equipment and appliances under stringent safety regulations.'

Owen Kyffin, Tax Partner at Whitley Stimpson explains: "This follows on from the crack down on private tutors, plumbers, doctors and dentists.  The plumbers initiative has so far generated an additional £1.98 million, so it is no surprise HMRC are utilising similar tactics with electricians.  It's likely the Revenue hold information relating to electricians as they did for plumbers where HMRC acquired information from Corgi and Gas Safe in order to identify potential targets."

HMRC are using increasingly sophisticated software to identify those who are not paying sufficient tax; as the use of this software develops they will be able to target specific business more effectively.   

The HMRC said they are beginning to win the fight against tax avoidance, evasion and fraud. The tax authority said the gap between what was paid and what should have been paid had fallen by £4 billion to £35 billion.

Owen adds: "The message from HMRC to electricians is clear: contact them before they contact you. The chances of going undetected are diminishing."

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 email: owenk@whitleystimpson.co.uk.