HMRC target wealthy to reduce tax avoidance
HMRC continue to focus their attention, efforts and resources ensuring that the tax owed in the UK is reported and subsequently paid.
UK wealth of over £1million
In 2011 a tax avoidance initiative was set up to target taxpayers with wealth of over £2.5 million. HMRC’s Affluent Unit carries out these specific investigations.
In 2013, the bar was dropped significantly to target those with wealth of just £1 million.
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Most London based commercial business owners are now on the radar.
Even more resources on the way
Because the efforts of the Affluent Unit are proving prosperous, even more resources are being allocated to this initiative.
In 2014, additional tax recovered reached £137 million, over £50 million more than the £85 million in 2013.
As a consequence, 100 more tax inspectors were recruited into this unit last year and there is no telling whether the bar will be dropped again and the criteria for inspection widened further.
HMRC – a powerful position
The additional resources, coupled with advanced technology that takes data from multiple sources to see where people may not be declaring their full income, means HMRC are putting themselves in a very powerful position.
HMRC have a High Net Worth Unit too that tackles tax avoidance for those with considered wealth of over £20million.
Investigations can be lengthy and costly not to mention stressful so keeping above board is always advisible. Figurit work hard to save tax for commercial business owners using robust, long term tax planning strategies. Call us to discuss.
T: 020 7376 9333