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Budget HMRC

Budget 2020: Retroactive HMRC powers

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At first glance, this Budget appeared not to include a significant extension of HMRC’s powers, but as always, the devil is in the detail.

12th Mar 2020
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There are two separate provisions which will change the tax law with retrospective effect due to correct perceived deficiencies in the Taxes Management Act 1970. There will also be measures to tackle the hidden economy, where businesses operate without bothering about tax compliance, and a suggestion that HMRC will take on the regulation of tax advisers.

Retroactive law

This is the term that HMRC uses when a law change is deemed to always have had effect. It tends to happen when HMRC has failed to comply with the law and loses cases at the tax tribunals. Parliament then concedes to HMRC’s request to change the law to what it thought it said.

Statutory notices

This was trailed with an announcement on 31 October that notices and penalties automatically issued by the HMRC computer will be valid notices.

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Replies (8)

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By Trethi Teg
13th Mar 2020 14:56

The law is no longer the law in the UK, the law is what HMRC say it is.

Can nobody see what is going on. Those that can see don't care as it doesn't effect them.

Our politicians seem to be in awe of HMRC and or are complicit in this.

Lets start saying that the law on motor offences and speeding isn;t what the law says but is what the local chief constable says. And by the way he can retrospectively change his mind and go back 10 years and prosecute thousands. Let's see what people say then.

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