Watch out for the £4 billion tax clawback
HM Revenue & Customs is planning to seize an additional £ 4 billion this year through more aggressive tax investigation work and tougher powers, warns accountancy group UHY Hacker Young.
This is an increase of a third on the £12.1 billion of tax clawed back in during 2008/9, taking the total to £ 16.1 billion in 2010/11.
John Lerston, a partner at the firm, says: ‘£4 billion more tax is a massive increase that shows how urgently the budget deficit needs to be reduced. To achieve such an extreme target, HMRC will be forced to come down hard on legal tax avoidance and illegal evasion.’
He says: ‘HMRC’s risk profiling is already far from being perfect, with many enquiries yielding very little or no additional tax at all.’ An HMRC spokesman says: ‘ The £ 4bn includes reduced losses from such things as criminal attacks.
‘ We t r eat taxpayers with respect and we believe that the majority of taxpayers are honest and want to play by the rules.’