HM Revenue and Customs (HMRC) have continued their assault on tax evaders, recently announcing more planned initiatives to target particular groups of individuals who are not paying their share of tax.
HMRC will be using ‘web robot’ technology to search the internet and find information which can then be evaluated, and pinpoint people more accurately who have failed to pay tax as required.
The latest campaign announced will be focusing on businesses trading above the £73,000 VAT registration threshold who have not registered for VAT.
This is continuing the assault started under the Plumbers Tax Safe Plan (PTSP), announced a couple of months ago, providing plumbers with an opportunity to ‘come clean’ and face limited penalties. The notification period ended on 31 May with disclosures ed meds online ending 31 August.
Other campaigns planned for 2011/12 include:
- E-marketplaces, where businesses operate without declaring tax. The most prominent is E-Bay.
- People who provide private tuition and coaching, essentially using their expertise to provide a second income
- Trades, which is expected to build on the plumbers campaign and will provide another group of tradespeople the opportunity to come forward with undeclared earnings
Comment – HMRC’s focus is on tax evasion which is illegal and which we would not condone. It is also different from tax avoidance, which is very much legal and includes the best aspects of tax planning, including business structures and tax efficient investments in assets. Please contact us for any help with tax planning.
More information about HMRC’s campaigns can be found here.