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HMRC widens tax taskforce net

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8th Jun 2012
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Just before the Jubilee weekend, HMRC expanded its compliance and enforcement programme by announcing a wave of new taskforces to investigate evasion in specific commercial and geographical sectors:

  • Property rentals in East Anglia, London, Leeds, York, Leicester, Nottingham, Lincoln, Durham and Sunderland; expected to recover more than £17m
  • Restaurants in the Midlands - extension of work already underway in Scotland, North West and London; expected to recover £2.5m
  • Taxi firms in Nottingham, Yorkshire, Leicestershire and Derbyshire; expected yield £2m
  • Taskforce targeting London’s market traders announced 31 May; expected yield £1.85m

The task force focusing on restaurants will extend the geographical reach of similar campaigns that have already targeted establishments in London, the North West and Scotland. Almost 30 companies have been prosecuted under the initial exercise, and HMRC is projecting a yield of more than £13m. HMRC hopes that taking in the Midlands will add another £2.5m to that total.

According to Gary Ashford, the CIOT’s representative on the Compliance Reform Forum, these new task forces reflect the scrutiny that has always focused on historic cash trades.

“We have already seen some unannounced visits on restaurants in some parts of the country, including the arrest of some of the restaurant owners themselves and it seems the Midlands is next,” he said. 

With more task forces to come in 2012-13, Ashford and other advisers are encouraging those who have evaded tax to consider voluntary disclosures, which usually mean lower penalties and less likelihood of prosecution.

e-marketplaces campaign deadline nears

As the new task forces get to work, the opening phase of the e-marketplaces campaign will come to an end on 14 June 2012, the date by which those who wish to take part must notify HMRC of their  intentions.

All outstanding payments will have to be completed by 14 September 2012.

Baker Tilly’s George Bull commented: “Those who decide to own up can effectively regularise their tax affairs by making an offer to pay any extra tax, interest and penalty due.  Penalties charged under the campaign can be a little as 10% or 20% of the tax involved and are thus much reduced from the maximum 100% of the tax which might otherwise be sought if HMRC initiate an investigation of their own.”

Taskforce programme

Even with regular updates to AccountingWEB’s tax taskforce tracker, it can be difficult to monitor all of HMRC’s current compliance campaigns. By our estimates, some 25 campaigns have now been undertaken since the beginning of 2011; with around 20 or so more due to be set in train during 2012/13.

HMRC’s taskforces bring together various compliance and enforcement teams for intensive bursts of targeted activity, typically focusing on 300 of the highest risk cases.

According to Exchequer secretary David Gauke, the 12 taskforces launched in 2011/12 are on target to collect more than £50m. 

If you or your clients have been affected by any of HMRC's targeted campaigns, join our Tax investigations discussion group to share experiences and advice with other members.

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By esimps
11th Jun 2012 12:19

I welcome this move and wish the taskforce luck in their pursuits. Everyone has a responsibility to pay tax and the country needs the tax take more than ever!

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By The Black Knight
11th Jun 2012 13:54

Good!

But why have they stopped publishing details? You would have thought the value of the 30 prosecutions mentioned above is in the deterrent.

These have been punished as examples? Why keep it a secret?

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