Electricians targeted with contractor tax warnings

Warnings regarding prompt payment of contractor tax have been sent out to electricians, HM Revenue & Customs (HMRC) has announced.

The tax authority has targeted a number of different professions in a bid to tackle tax avoidance and electricians are the latest to be hit by the scheme.

However, they do have a chance to cut any missed contractor tax payments they might have. Electricians who declare their taxes between 14 February and 15 May will only be eligible for a maximum penalty of 20 per cent of their missed taxes and the majority of people will only have to pay out for ten per cent.

But those that miss these dates will be hit with 100 per cent penalties if they are discovered to have avoided their contractor tax payments.

Marian Wilson, head of HMRC Campaigns, commented: “Our aim is to make it easy for electricians to contact us, make a full disclosure of income and face a reduced penalty.

"We are using a variety of intelligence sources to target electricians who have not declared their full income. This is the same method we used for the plumbers' campaign, and that intelligence has led to ten arrests and thousands of investigations, so we know it works.”