New research suggests that HM Revenue & Customs (HMRC) beat its target for tax investigation work by £2 billion in the last year.
The analysis, published on 16 December, found that a record £20.7 billion in additional revenue was collected by HMRC through compliance work focused on tax avoidance and evasion in 2012-13, 11 per cent more than the £18.6 billion total for the previous year. The target for 2012-13 was £18.7 billion.
Researchers found that extra from tax investigations into small businesses jumped 30 per cent to £565 million last year. At the same time, the yield from tax investigations into personal tax returns rose by 38 per cent to £609 million.
A spokesman for the UHY Hacker Young, which carried out the research, said: “HMRC does not always get it right, but many taxpayers find it very hard to dispute a demand for extra tax, even though they may genuinely believe they have paid the right amount.
“Larger businesses may decide that paying up is easier than fighting their corner through a tribunal dispute. Individuals and small businesses in particular simply may not have the time, resources or know-how to challenge a bill.”
At Taxation-Investigation, we understand that the cost of a taxation investigation can be high and in a tough economic climate, it may be tempting to settle with HMRC rather than fight your corner, even if you believe you have a good case.
With our highly competitive rates and flexible fee arrangements, we offer value for money expertise that we know from experience delivers a real return on clients’ investment in our services.
Our team includes ex-HMRC staff, giving us a real understanding of the way HMRC works, and we have a strong track record in dealing with matters quickly and cost effectively.
For more information on our tax investigation services, please contact us.