The importance of registering for self assessment and VAT has been underlined by a recent court case.
A plumber who has failed to pay almost £160,000 in VAT, tax and National Insurance contributions (NICs) over 15 years and has been jailed as the result of one of HM Revenue & Customs' (HMRC) targeted campaigns. The plumber has been given a two year sentence for failing to submit self assessment returns or complete VAT returns since setting up his plumbing and maintenance business in 1997.
The individual was charged with two counts of cheating the public revenue of £158,289, comprising £95,395 in income tax and NICs, and £25,719 in VAT, plus interest. The individual had ignored a HMRC initiative to disclose the unpaid tax he owed. Other plumbers who have come forward in response to the Plumbers Tax Safe Plan (PTSP) have already paid over £4 million in outstanding tax. Furthermore HMRC estimates that over £2 million more has also been recovered from follow-up enquiries.
HMRC are currently targeting plumbers, gas fitters, heating engineers and members of associated trades where they believe people are avoiding their obligation to pay the correct amount of tax. It is vitally important that your affairs are up to date, and if they are not then you may end up like the plumber above with a criminal conviction.
If you need advice on registering your business with HMRC, or completing and submitting the relevant paperwork, please do not delay and contact us today on 01228 711 888.
Posted: July 8th, 2013