Lowest receipts since September 1992

Data released by HMRC shows that net VAT of £2.35bn was paid to HMRC in March 2020 the lowest monthly figure since the £2.02bn of September 1992 – the month of ‘Black Wednesday’ and the UK’s withdrawal from the European exchange rate mechanism.

International law firm Pinsent Masons says that as a result of the drop in HMRC’s income by the fall in receipts the authority is likely to kickstart a more aggressive investigation enforcement and collection regime when the lockdown ends. 

Jason Collins partner and head of litigation regulatory and tax at the firm said: ‘HMRC has paused some of its investigation and enforcement activity for now but that will end very quickly once the coronavirus crisis is over. A very large shortfall is being created in public finances and HMRC will have to play a significant role in addressing it. That will...