Plea bargain deals raise extra tax of £120m

The amount of extra tax collected by HMRC through plea bargain agreements with taxpayers increased 25% last year to £119.4m up from £95.8m in 2018-19 according to a freedom of information request by Pinsent Masons.

HMRC can contact a taxpayer directly with the offer of a plea bargain agreement if it already suspects them of tax evasion. Alternatively a taxpayer who wants to disclose previously hidden taxable assets can apply to HMRC for a plea bargain through the contractual disclosure facility.

Pinsent Masons adds that a wide range of taxpayers can use these agreements from ultra-high net worths with complex offshore tax affairs through to individuals on average incomes who owe only small amounts of tax.

Steven Porter partner at Pinsent Masons said: ‘As HMRC gathers more UK and overseas data on suspected tax evaders the net is being tightened. This is a...