HM Revenue & Customs is to spend £1 billion on enforcement
Discussion
Gordon wants your money!
"HM Revenue & Customs is to spend £1 billion on enforcement and compliance this year to cut tax avoidance and evasion by £2.4 billion, Britain's most senior tax collector said last night.
Less than a week after the Chancellor proposed a rise in income tax to 50 per cent for the highest earners, the Revenue said that it would spend a quarter of its £4 billion budget on catching tax-dodgers. Lesley Strathie, who took over as the HMRC's chief executive and permanent secretary five months ago, said that the organisation would relentlessly pursue those who bent or broke the rules.
The clampdown comes after a change of tack by the Revenue's prosecutors last year. In its “litigation and settlement review” the Revenue promised to take more people to court to recover tax instead of cutting deals in out-of-court settlements. With companies and individuals prepared to defend themselves in court, such a strategy has proved expensive.
Hartley Foster, a tax partner in DLA, the law firm, said that it was no surprise that the Revenue would divert more money to enforcement after introducing a deliberate strategy of picking more costly court fights. He said that since the Revenue was under pressure to increase its overall tax take, it appeared to have decided that enforcement was a worthwhile area on which to spend money. "
http://www.timesonline.co.uk/tol/money/tax/article...
I can think of a number of IT contractors who won't be sleeping easy tonight.
"HM Revenue & Customs is to spend £1 billion on enforcement and compliance this year to cut tax avoidance and evasion by £2.4 billion, Britain's most senior tax collector said last night.
Less than a week after the Chancellor proposed a rise in income tax to 50 per cent for the highest earners, the Revenue said that it would spend a quarter of its £4 billion budget on catching tax-dodgers. Lesley Strathie, who took over as the HMRC's chief executive and permanent secretary five months ago, said that the organisation would relentlessly pursue those who bent or broke the rules.
The clampdown comes after a change of tack by the Revenue's prosecutors last year. In its “litigation and settlement review” the Revenue promised to take more people to court to recover tax instead of cutting deals in out-of-court settlements. With companies and individuals prepared to defend themselves in court, such a strategy has proved expensive.
Hartley Foster, a tax partner in DLA, the law firm, said that it was no surprise that the Revenue would divert more money to enforcement after introducing a deliberate strategy of picking more costly court fights. He said that since the Revenue was under pressure to increase its overall tax take, it appeared to have decided that enforcement was a worthwhile area on which to spend money. "
http://www.timesonline.co.uk/tol/money/tax/article...
I can think of a number of IT contractors who won't be sleeping easy tonight.
They need to get their own house in order first. Mrs Puggit received a £100 late fine, despite being a month early with her return.
The letter about the fine arrived 3 weeks after the written date - giving her 1 week to pay.
On appeal she won, apparently - the £100 fine was repaid, but no letter of acknowledgement.
As per above, they will recoup less than the £2.4bn planned - and I'd guess less than the £1bn it costs - but at least they'll employ more people
The letter about the fine arrived 3 weeks after the written date - giving her 1 week to pay.
On appeal she won, apparently - the £100 fine was repaid, but no letter of acknowledgement.
As per above, they will recoup less than the £2.4bn planned - and I'd guess less than the £1bn it costs - but at least they'll employ more people
SGirl said:
Just at the so-called rich people.
I doubt that. Most of the Labour Ministers are somewhat wealthy, with multiple homes and assets offshore...... That's why those loop holes which were, according to Mr Brown when in opposition, a disgrace, still exist now after 11 years of the self serving scum being in power...Jasandjules said:
SGirl said:
Just at the so-called rich people.
I doubt that. Most of the Labour Ministers are somewhat wealthy, with multiple homes and assets offshore...... That's why those loop holes which were, according to Mr Brown when in opposition, a disgrace, still exist now after 11 years of the self serving scum being in power...SGirl said:
Oh look. Another Labour stick without a carrot. What a surprise. 
As mentioned above - don't suppose they'll be looking at the Black Economy, will they? Just at the so-called rich people.
They do quite a lot of investigation in to the black economy actually. For instance there have been several cases of prostitutes being given heavy tax bills. They have even gone so far as to claim that prostitutes in brothel's are infact employee's of the brothel owner and give the owner a large bill for NI. As mentioned above - don't suppose they'll be looking at the Black Economy, will they? Just at the so-called rich people.
I didn't send in my tax return this year as I thought I'd test the £100 fine procedure (I have been PAYE since 2002). I duly got the fine, appealed it, and was successful. they said in the letter no need to fill in any more tax returns.
f
k me if they didn't this week send another tax return though ...
f
k me if they didn't this week send another tax return though ...Fittster said:
I can think of a number of IT contractors who won't be sleeping easy tonight.
Copied from the comments attached to the article:"How much have all the failed IR35 investigations cost the revenue? The current track record (from www.pcg.org.uk) shows that they have lost 1462 cases and won a mere 6. Let's hope they spend this money elsewhere."
Einion Yrth said:
. said:
enforcement and compliance this year to cut tax avoidance and evasion
Perhaps they could start with the cabinet?ewenm said:
Einion Yrth said:
. said:
enforcement and compliance this year to cut tax avoidance and evasion
Perhaps they could start with the cabinet?Not rocket science really - still, if it makes the hard of thinking feel better about taxing bankers etc more, it's OK......
plasticpig said:
SGirl said:
Oh look. Another Labour stick without a carrot. What a surprise.
As mentioned above - don't suppose they'll be looking at the Black Economy, will they? Just at the so-called rich people.
They do quite a lot of investigation in to the black economy actually. For instance there have been several cases of prostitutes being given heavy tax bills. They have even gone so far as to claim that prostitutes in brothel's are infact employee's of the brothel owner and give the owner a large bill for NI. As mentioned above - don't suppose they'll be looking at the Black Economy, will they? Just at the so-called rich people.
Not being sarky - it's a genuine query. I'm interested to know.
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