HMRC to target builders and door-to-door salespersons

The construction industry is to be the next trade sector targeted by tax inspectors.

HM Revenue and Customs (HMRC) is urging traders who carry out roofing, joinery bricklaying, window fitting and carpentry to pay up ahead of a planned clampdown.

The crackdown by the tax authority, later this year, follows similar targeted campaigns against tutors, online traders, doctors and dentists.

It is understood inspectors will use web searches to target those they suspect of failing to pay tax.

They will then put together a jigsaw of information in order to find out where traders may not have been declaring income and not paying tax as a result.

Meanwhile HMRC are to look at the tax returns of people paid to buy and sell goods directly, such as on the doorstep, or who receive commission on these sales.

The tax authority will give these workers a chance to come forward and pay any outstanding debt, or face investigation or large penalties when a deadline has elapsed.

Marian Wilson, of HMRC’s risk and intelligence unit, said: “Using new technology, we have been able to analyse returns to HMRC covering a range of taxes and to cross-reference these with other information to build a picture of where we believe we have taxpayers with missing returns.

“We will use the same technology to analyse information gathered to support the following two campaigns and for each campaign, after the opportunity has closed, we will use the information we have to pursue those who choose not to use the chances we provide to put their affairs in order.

“We are offering all the people targeted the opportunity to come forward. Penalties will be higher if we come and find people after the opportunity. A criminal investigation may also result. I therefore urge them to disclose unpaid tax voluntarily.”

Two other campaigns, which have already been announced, will soon be launched:

  • E-marketplaces. This will cover those who are using e-marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed. People 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.
  • Electricians. This will build on HMRC’s plumbers’ campaign and give an opportunity to another group of tradespeople to come forward and declare unpaid tax.