If you’re an electrician and you haven’t told HM Revenue & Customs (HMRC) about all your income, now’s the perfect time to do so. Until May 2012, you can use the Electricians’ Tax Safe Plan (ETSP) to get your tax affairs back on track.
But what is the Electricians’ Tax Safe Plan? Who is eligible to use it? And how does it work? Keep reading to find out.
Are you eligible for the Electricians’ Tax Safe Plan?
HMRC defines an electrician as ‘anyone who installs, maintains and tests electrical systems, equipment and appliances under stringent safety regulations.’
If you do qualify under these criteria, you may not yet have told HMRC that you have started working for yourself. You may also not have disclosed all your income. If one of these applies, you probably won’t have paid the right amount of tax.
The purpose of the ETSP is to help you get your tax affairs up to date. And, there are a number of advantages to taking part in this scheme. By telling HMRC about any income you haven’t previously disclosed:
• You may be able to pay what you owe in instalments
• You may only have to pay for a maximum of six tax years
• You can tell HMRC how much penalty you should pay
By using this scheme you are effectively wiping your tax slate clean and benefiting from a fresh start. You can stop worrying about what might happen when HMRC find out that you’ve not been telling them about all of your income. And, it’s a great opportunity to start getting your tax right from now on. And, you’ll know exactly how much it’s going to cost to sort out things for earlier tax years.
What to do to take advantage of this scheme
To take advantage of this campaign you must get in touch with HMRC by 15 May 2012. You can do this by post, telephone or online. Initially, all you have to do is let HMRC know that you want to use the scheme.
Once you have notified HMRC< you then have until 14 August 2012 to disclose your income and to pay any outstanding tax that you owe.
If you’re not sure how to use the scheme, feel free to ask questions in the comments box below. The HMRC website has more information about the Electricians’ Tax Safe Plan.
What if I’m not an electrician but want to get my taxes up to date?
There may be instances where you’d like to get a ‘fresh start’. Perhaps you want to get your tax affairs in order or pay what you owe in instalments?
In this instance, only electricians covered by the definition above can take part in the scheme. However, if your undisclosed income is not covered by the ETSP campaign you can still get in touch with the Campaigns Voluntary Disclosure Helpline on 0845 601 5041.