HMRC's targeted tax campaign leads to conviction
HM Revenue and Customs' targeted campaign against plumbers has led to another conviction and suspended prison sentence for a tax dodger.
Plumbers are one of several groups HMRC has focused its attention on with a high profile 'warning period' to get their tax affairs in order or report to HMRC that they have tax to pay; followed by a targeted clampdown on the specific industry, sector or region.
To date, more than £500m has been raised by HMRC from voluntary disclosures through these targeted schemes, and a further £105m from follow-up activity. Campaigns launched so far have focused on offshore investments, medical professionals, central heating engineers, plumbers, VAT defaulters, coaches and tutors, electricians and online traders.
Flout the law
In the latest case, a Hampshire based plumber has been sentenced to a four month jail term, suspended for 12 months after pleading guilty to tax fraud.
HMRC investigators discovered that Peter Mack (59) of Ringwood set up his own freelance plumbing business in 1997, but never registered his earnings with HMRC. Detailed enquiries revealed that over a 14 year period Mack evaded around £88,000 of Income Tax and VAT, plus interest, bringing the total to £112,000.
Mack was arrested at his home in July 2011 and pleaded guilty to £40,000 of fraud at Southampton Crown Court in April 2012. He was sentenced to a four month jail term, suspended for 12 months, at Southampton Crown Court. Mack must also pay £1,800 costs and serve 100 hours of community service.
Mack has recently paid £40,000 to HMRC who will seek to recover the rest of the money through civil proceedings.
John Cooper, HMRC Assistant Director Criminal Investigation, said: "After leaving full-time employment in 1997 it would appear that Mack decided to set-up alone and flout the law. He didn't register for Self Assessment, and paid no Income Tax or VAT. This gave him an unfair and illegal advantage over his law abiding business competitors and robbed the exchequer of vital revenue."
An earlier case 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.