HMRC announced on 1 March 2011 that plumbers could bring their tax affairs up to date using the PTSP. The extent of the tax liability and the penalty payable is dependent on whether the person (individual, partnership or company) completed an incorrect return because of an innocent error, carelessness, or deliberate actions on their part(s).
HMRC will go back:
* Four years for an innocent error (no penalty);
* Six years for carelessness (10% penalty); and
* Twenty years for deliberate evasion with a 20% penalty.
Deciding how many years are affected requires a detailed understanding of the legislation and we recommend specialist advice is sought.
Similar terms are being offered to everyone, unless they were able to take advantage of a previous facility (ODF, NDO, THP). Interest is also payable on the tax paid late.