HMRC takes tougher stance on tax evasion

HMRC is taking an increasingly tough stance towards tax evaders, according to new analysis from Pinsent Masons, with officials looking to balance the books. The number of individual taxpayers charged with tax evasion has jumped 11% in a year, from 304 to 336. HMRC also issued nearly 90,000 penalties over mistakes in self-assessment returns in the 2021/22 tax year, up from 49,701 in 2020/21. Rosie Hooper, of the wealth manager Quilter, said: “The jump in issued penalties is a warning shot from HMRC. It has to collect enough revenue to pay back for pandemic schemes such as furlough, and it needs to look like it is taking a tough line.” Sean McCann, of advice firm NFU Mutual, said the sharp rise was also driven by HMRC staff moving back to their normal jobs, with the tax office moving many staff away from compliance work to customer service during the pandemic. “Now they are back to their regular job, we are seeing more tax return challenges,” he said. HMRC is under pressure to close the “tax gap” – the difference between the total amount of tax that should be paid versus that which actually is. This stood at £32bn in 2020/21.

The Daily Telegraph

Related Post

Reeves urged to abolish the £175,000 residence nil-rate band The Chancellor is facing pressure to eliminate the £175,000 residence nil-rate band in her upcoming Budget. Rachel Reeves previously argued that this allowance, which costs around £2bn annually, primarily benefits the wealthy and now the Resolution Foundation is pushing her to scrap it. In 2011, she stated: “Raising the inheritance tax limit to £1m for […] By Lisa Brownlow, 18 September 2024
Read Now
Small firms responsible for 80% of tax evasion Analysis by the National Audit Office (NAO) shows that small firms are responsible for more than 80% of tax evasion. The report cites HMRC estimates that £5.5bn was lost to deliberate tax evasion in the 2022/23 financial year, with small businesses responsible for 81% of the total. Despite a reduction in the overall tax gap […] By Lisa Brownlow, 16 September 2024
Read Now
Threshold freeze creates 4.4m more taxpayers The number of people paying income tax has increased by 4.4m in three years due to the freeze on thresholds, according to HMRC data. The figures also show that the decision to freeze the personal threshold at £12,570 has pulled an additional 1.77m pensioners into the income tax bracket. There are currently an estimated 37.4m […] By Lisa Brownlow, 3 July 2024
Read Now
↑