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The HMRC division dedicated to investigating the affairs of affluent taxpayers collected £137.2m in additional tax in 2013/14, up from £85.7m in 2012/13, an increase of 62%, according to law firm Pinsent Masons.
Around 500,000 individuals are potential targets of the Revenue team that focuses on UK residents with an annual income in excess of £150,000 or wealth of more than £1m. They are people not deemed rich enough to be the concern of the tax department’s high net-worth unit.
The HMRC division dedicated to investigating the affairs of affluent taxpayers collected £137.2m in additional tax in 2013/14, up from £85.7m in 2012/13, an increase of 62%, according to law firm Pinsent Masons.
Around 500,000 individuals are potential targets of the Revenue team that focuses on UK residents with an annual income in excess of £150,000 or wealth of more than £1m. They are people not deemed rich enough to be the concern of the tax department’s high net-worth unit.
The law firm’s head of litigation, James Bullock, said the surge in extra revenue served as a reminder that “HMRC are widening their lines of inquiry. They no longer focus solely on the super-rich. Taxpayers who would consider themselves moderately successful professionals and businessmen are now also coming under the scrutiny of specialist units.”
Bullock added a note of caution for the tax department, urging it to weigh up the benefits of greater scrutiny of the self-employed and businesses against potentially negative effects on the economy.
“The fact that more is being raised from compliance investigations should, as a general principle, be welcomed, but HMRC need to be vigilant so that over-zealous use of new powers does not end up damaging business,” he said.
“The diluting of the direct recovery of debt plans and the apparent disappearance of the proposed strict liability offence of offshore evasion are hopeful signs that tax officials are getting the message.”
