Current HMRC investigation campaigns

Tax Comments Off on Current HMRC investigation campaigns

HMRC campaigns are broadly based on similar principles which involve three main stages:

  1. HMRC identify taxpayers from a specific group who may have outstanding tax liabilities.
  2. Stage 2 – HMRC offer a limited time disclosure facility with reduced penalties offering taxpayers the opportunity to bring their tax affairs up to date
  3. Stage 3 – HMRC may formally investigate taxpayers that did not come forward under the disclosure facility or who HMRC believes have made an incomplete disclosure.

It should be noted that any individual can make use of these campaigns to advise HMRC of any sources of undisclosed income.

Current and upcoming disclosure opportunities:

Electrician’s Tax Safe Plan (ETSP)

Electricians are to be targeted for tax evasion from February 2012. The launch of the ETSP will build on the success of the ‘Plumbers Tax Safe Plan’ (PTSP) and provide an opportunity to another group of trades people to come forward and declare unpaid tax and regularise their tax affairs.


This disclosure opportunity will cover individuals and businesses who are using e-marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed. Individuals who only sell a few items and who are not traders are unlikely to be liable to tax and will not be targeted by this campaign. The campaign is expected to begin Spring 2012.

Liechtenstein Disclosure Facility (LDF)

This agreement is designed to target UK taxpayers with investments in Liechtenstein which have not been taxed to make a full disclosure to HMRC.  This agreement known as the Liechtenstein Disclosure Facility (LDF) will allow penalties on unpaid tax to be capped at 10% of tax evaded over the last ten years. The LDF commenced on 1 September 2009 and will run until 31 March 2015. Both HMRC and the Liechtenstein authorities expect that by the end of the LDF all UK taxpayers with Liechtenstein investments will be fully tax compliant.

If you have any queries, concerns or would like to take advantage of a current campaign to disclose any personal income to HMRC, please give me a call.

Sue Stephens, Tax Manager