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HMRC extends higher-rate tax avoidance crackdown

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  • 09/02/2012
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HMRC extends higher-rate tax avoidance crackdown
Her Majesty’s Revenue and Customs (HMRC) is set to launch another campaign aimed at catching higher-rate tax avoiders.

The department will focus on high rate taxpayers working in the home improvement market and people who receive income from buying and selling goods or commission from those sales.

HMRC will use its internet robots to search online for information on specific people and businesses.

It comes after HMRC targeted wealthy individuals who own property abroad in October 2011.

The campaign will focus on individuals or businesses which have failed to complete tax returns.

Marian Wilson, of head of campaigns at HMRC’s risk and intelligence department, said: “Most people pay their taxes in full and on time, so it is right that HMRC works hard to secure payment from those who have not come forward.

“Using new technology, we have been able to analyse returns to HMRC covering a range of taxes and to cross-reference these with other information to build a picture of where we believe we have taxpayers with missing returns.

“We will use the same technology to analyse information gathered to support the following two campaigns and for each campaign, after the opportunity has closed, we will use the information we have to pursue those who choose not to use the chances we provide to put their affairs in order.”

The campaign will be launched before the end of March.

Gary Ashford, head of tax investigations at RSM Tenon, said: “HMRC started with offshore bank accounts, then moved to the medical profession and more recently plumbers and tutors and will shortly tackle electricians.

“The activity on missing tax returns looks like HMRC recognise that they have been a little soft in the past on those not submitting returns.

“This is fine, but historically the message has been quite blurred by HMRC advising many people they do not need to submit a return. It is essential that clear guidance on who needs to submit returns is provided.”

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