ANYONE who has not fully declared their income to the taxman in recent years has the chance to catch up now and face reduced penalties.
The tax amnesty, named The Plumbers Tax Safe Plan (PTSP), applies to anyone who wants to voluntarily correct their tax position.
Those coming forward will still pay a penalty but in most cases it will be up to 20 per cent of the tax owed. Anyone caught after the disclosure period will face a minimum penalty of 35 per cent but could have to pay up to 100 per cent of the tax owed and in extreme cases may be prosecuted.
Anyone wanting to make a voluntary disclosure should notify HMRC by May 31 and they will have until August 31 this year to pay any tax owed.
Nigel Westman, partner of chartered accountancy firm Clough & Company, said: “Although HMRC is not promoting the PTSP as a full tax amnesty for everyone it does appear to be very close, meaning anyone volunteering to pay unpaid tax can expect similar terms.
“This is a unique opportunity for people with undisclosed income or gains to put their affairs in order without facing significant punishments. Most will only have to pay up to six tax years and will be charged a low penalty rate of 10 per cent.