Tax inspectors currently investigating 600 plumbers who failed to pay tax

Plumbers, gas fitters and heating engineers face hefty penalty rate fines if they fail to pay their tax within the next month.

The warning comes from HM Revenue and Customs who said they were already in the process of investigating over 600 plumbers who failed to declare on tax they owe.

In March HMRC offered a special tax plan to help plumbers put their tax affairs in order. Under the Plumbers Tax Safe Plan, tradesmen who failed to declare tax payments faced a penalty rate of only 10%.

If plumbers don’t take advantage of the plan before 31 August, they will incur penalty rates of 100%.

Mike Wells, HMRC’s Director of Risk and Intelligence, said: “Plumbers who have notified us of their intention to disclose now have until the end of August to tell us what they owe and make arrangements to pay.

“We are determined to ensure everyone pays their fair share and, since 31 May, have begun a series of enquiries targeting people in the plumbing industry. More than 600 will be underway by the end of this month, with many more to follow. “

“We have left the PTSP disclosure route open and I urge anyone with unpaid tax to use it to come forward and avoid potentially lengthy and costly investigations. The penalty they will pay will still be lower than when HMRC catches up with them.”

Plumbers can disclose unpaid tax and make arrangements to pay online at www.hmrc.gov.uk/plumberstaxsafeplan or call HMRC on 0845 600 4507