Up to 50,000 plumbers, gas fitters and heating engineers have only a week left to register for an HM Revenue & Customs tax amnesty over unpaid bills.
Plumbers who miss the May 31 deadline will face an immediate clampdown as the taxman goes after workers who owe cash
Under the Plumbers Tax Safe Plan, trades who owe undeclared tax and come forward will face a penalty rate of only 10%, with a maximum of 20% and be given until 31 August to pay.
From 1 June, HMRC said it “will begin using information gathered from many different sources to open investigations into those who have failed to come forward.
“Substantial penalties or even criminal prosecution could follow.”
The fines can be up to 100% of the tax owed.
Mike Wells, HMRC’s Director of Risk and Intelligence, said: “Plumbers, gas fitters and heating engineers whose tax affairs are not in order need to contact HMRC now and fully disclose their income. This will allow them to take advantage of a reduced penalty.
“We are determined to ensure everyone pays their fair share and will begin using a variety of intelligence sources to target plumbers who have not declared their full income as soon as the chance to register for the scheme has passed.”