Appeals to the First-tier Tribunal soar

Disputes between HMRC and taxpayers are surging according to information obtained by Price Bailey. The number of appeals to the First-tier Tribunal has jumped by 43% over the past two years with 7 377 cases in 2017-18 up from 6 559 in 2016-17 and 5 161 in 2015-16.

The firm said the amount of data at HMRC’s disposal has increased. Its Connect system analyses vast amounts of information giving the department the ammunition to challenge more taxpayers despite fewer resources. As partner Richard Grimster said: ‘HMRC is now able to spot discrepancies much more efficiently. Its software can automatically check information reported in tax returns against bank accounts and make sure they tally. Previously checks of this kind would have been laborious and time-consuming but HMRC’s software can spot any inconsistencies swiftly and flag those for further investigation.’

He said HMRC has adopted a ‘more aggressive and intransigent approach...