HMRC issues tax defaulter warning

Date: 19th August 2011

Small businesses operating in various UK industries could be tempted to seek the advice of a specialist tax accountant following a recent government warning.

HM Revenue & Customs (HMRC) has confirmed its tough stance of tax payment by warning that recent arrests are "just the start" of things to come.

The warning comes after five plumbers were arrested for failing to declare their income from the work they do .

A further 600 enterprises are under investigation and HMRC has said the moves show taxpayers that it is not "bluffing" when it says tax defaulting will be cracked down on.

Mike Wells, director of HMRC's Risk and Intelligence Service, said: "These arrests are just the start. HMRC is considering hundreds of further cases for criminal investigation in the plumbing and medical professions.

"Some people may have thought we were bluffing when we said we have information that we will use to prosecute tax evasion."

John Pointing, assistant director of HMRC Criminal Investigation, added: "These arrests send a clear message that HMRC will take action against those who choose not to come forward and pay the tax they owe."

Posted by Emily Smith