HMRC target the wealthy for tax avoidance
HMRC continue with their quest to close the gap between the tax that is due and the tax that is paid in the UK.
Targeting the wealthiest UK residents
One of their initiatives, which started in 2011, was the set up of the HMRC Affluent Unit, targeting the wealthiest people in the country. In 2011, this special unit was responsible for investigations into taxpayers who had wealth of over £2.5million.
In 2013, their objectives changed though to target any taxpayer with wealth over £1million.
Successful doctors and dentists could now fall into this bracket.
Over £137 million in additional taxes
Income from these tax inspections in 2014 increased to over £137million, compared to £85million in 2013.
Subsequently, the special Affluent Unit doubled in size last year, recruiting more than 100 more tax inspectors to tackle this particular tax group.
With the extra resources and proven results, this special unit may well widen their criteria for inquiry even further.
HMRC High Net Worth Unit targets taxpayers with wealth of over £20 million.
Both units are reported to be using powerful technology that takes information and data from multiple sources to assess if people are living beyond their “recorded” means.
Doctors and dentists have a high earning capacity and therefore there is a possibility they could be on the target list for the Affluent Unit. Keep above board and on top of the latest news to avoid running the risk of a painful HMRC inspection.
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