Mortgage News
Spending Review: HMRC budget rise in tax avoidance clampdown
HM Revenue & Customs (HMRC) will receive a budget boost of £900m to crackdown on tax avoidance and claw back money owed.
In his Spending Review, Chancellor George Osborne said the investment would help reclaim £7bn in taxes lost through fraud and avoidance owed to the public purse.
Revenues & Customs has faced criticism for a string of recent failings, including revelations the HMRC computer system was telling people they were owed five-figure tax refunds.
Today George Osborne also announced a much tougher approach to tax avoidance by banks, after it emerged only four out of the 15 biggest banks operating in Britain have signed up to a code of conduct.
Individuals are also being targetted over avoidance. Last month HMRC wrote to hundreds of wealthy UK tax payers over possible large scale tax evasion, after it acquired a list of high net-worth individuals with accounts at the Swiss division of HSBC.
However in addition to the budget boost HMRC must also find 15% of efficiency savings.
Episode 4: New Build: Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
The Revenue service is currently embroiled in problems with the PAYE tax system which could continue for at least two years at a cost of £170m.