Solicitors & Lawyers   Legal Issues discussed and debated

For any business, no matter how large or small, it is critical that the company’s accounts are up to date. One area that is absolutely critical to get right is the amount of income tax that is paid. Many self-employed workers are failing to declare their earnings, which is putting them and their businesses in grave danger with the law. For any business, earnings must be declared and tax paid accordingly.

Recently in the UK, police raids have taken place in various properties, resulting in the arrests of 5 plumbers who are under suspicion of failing to pay taxes on earnings. In addition, 600 more plumbers are being investigated for similar crimes. Earlier this year, plumbers were given the opportunity to pay back any unpaid taxes, whilst avoiding prosecution. The scheme is called the Plumbers Tax Safe Plan and allows people to pay a fine, which constitutes to a percentage of the amount previously unpaid.

Of the 600 tradesmen to be investigated, it is reported that none of them had come forward when the scheme was introduced. If they are found guilty, it is expected that the penalties imposed will be severe, with some of the people in question owing up to 150,000 in unpaid taxes.

However, it is not only plumbers that have the chance to take advantage of such a scheme. In fact, similar schemes are available for anyone who has avoided paying the correct taxes in the past. The recent arrests of the five plumbers in London, Hampshire, Surrey, Middlesex and West Bromwich should send out warning signals to others and encourage them to come forward and pay the taxes they owe.

It is expected that further raids are to be carried out in locations across the country to catch the ‘ghosts’ who fail to pay income tax. It is estimated that each year, 45billion is lost in the UK because of unpaid taxes.