HMRC tax probes pull in £30bn

The revenue HMRC generated from tax investigations and other compliance activity hit £30.8bn in 2021, up from £28bn in 2020, analysis by law firm Pinsent Masons shows. HMRC had to suspend some tax investigations during the coronavirus crisis as it took on administration of the furlough scheme but with the wage support initiative ending, HMRC has been taking a tougher stance on tax errors and avoidance. The tax office has collected £5.8bn in cash from its tax investigation activity in the last year. It has also prevented a further £11.2bn in revenue being lost and benefitted by £6.4bn from closing tax loopholes. Income from investigations into the 2,000 biggest businesses brought in £8.6bn in the year to March 31, 2021. This represented 28% of all HMRC’s tax investigation yield last year. The taxman believes that £35.8bn of tax may have been underpaid by big businesses over the period. Steven Porter, a partner at Pinsent Masons, said: “HMRC’s stance on corporates underpaying tax has hardened significantly in recent years and is only likely to get tougher as it uses international data, big data and artificial intelligence to help it pursue unpaid tax.”

City A.M.

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