HMRC campaign leads to prison sentence

One of the HM Revenue and Customs targeted tax evasion campaigns has resulted in a 12 month prison term for a West Midlands plumber who failed to pay £91,000 of income tax and national insurance during 10 years of self-employed trading.

HMRC said that nine more plumbers have been arrested and investigations are ongoing. HMRC targeted plumbers in a special campaign in 2011. Other such campaigns have focused on offshore investments, central heating engineers, medical professionals, private tutors and coaches, companies not paying VAT, electricians and online marketplace traders.

The tactic employed by HMRC is to target a specific group with a high-profile campaign during which time there are preferential terms for putting one's tax affairs in order. After that time period is up, HMRC threatens a severe clamp-down on non-compliance in the particular area.

More than £500 million has been raised from these campaigns and more than £110m from follow-up activity by HMRC.

David Williams, 53, was arrested in September 2011 after an HMRC investigation which uncovered thousands of pounds in cash at his home.

Adrian Farley, Assistant Director of Criminal Investigation for HMRC, said: "This sentencing is a result of our drive to clamp down on tax evasion committed specifically by plumbers, gas fitters, heating engineers, electricians and others who fail to declare their earnings and pay the right tax.

"Tax evasion deprives our country of vital resources and gives tax cheats an unfair advantage over their business competitors so we will not hesitate to investigate those we suspect of evading tax."

On sentencing, His Honour Judge Challinor, said: "You were squirreling the money away, it was based on greed. Those tempted to avoid paying income tax must be deterred."