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HMRC Raises £23.9bn Additional Tax Revenue

Target_TaxAgility Accountants LondonPraised by Exchequer Secretary to the Treasury David Gauke as “successfully meeting” the challenges and ambitious targets to increase its yield, HMRC last week announced record additional tax revenue of £23.9 billion for the year ending March 2014; non-inclusive of tax revenue collected from individuals and corporations who paid their taxes on time.

This record figure comes as a result of HMRC cracking down on tax avoiders to ensure that those taxpayers who do pay what they owe on time, every time, don’t lose out to those who persist in not doing so. This is seen as part of a longer-term plan to raise £100 billion in additional tax revenue between May 2010 and March 2015.

Speaking on the issue, Mr. Gauke is quoted:
The government supports the hardworking, honest majority of taxpayers that play by the rules, and is determined to tackle the minority that seek to avoid paying the taxes they owe… we set HMRC ambitious targets to increase its yield and the figures published today demonstrate that HMRC is successfully meeting these challenges.

The Exchequer Secretary to the Treasury continued:
It also sends a clear signal – HMRC will pursue those seeking to avoid their responsibilities and will collect the taxes that are due.

Tackling Tax Avoidance

HMRC also announced last week the publication of a corporate report looking at their current work on tackling avoidance, evasion and fraud, in an effort to further increase additional tax revenues in years to come.

These avoidance measures include “launching taskforces, publishing the details of deliberate and serious defaulters and challenging tax avoidance through the courts.” It’s clear that such measures have been working, with the £23.9 billion figure being nearly one billion pounds greater than the target Chancellor of the Exchequer George Osborn set at last year’s Autumn Statement, and £3.2 billion and £9 billion up on additional tax revenues collected last year and three years ago, respectively.

Ensuring Your Taxes are Correctly Paid

To avoid being classed as a tax avoider and potentially having to pay more than you owe, it’s essential that you know exactly what taxes you’re due to pay, and when you’re due to pay them, whether you’re an individual, self-employed business owner or running a SME.

Your accountant can work with you to get your tax obligations into check and walk you through any paperwork that needs to be completed. Having an accountant on hand is more beneficial than ever thanks to IR35 legislation as, should you fall into IR35, your taxes (and the accompanying paperwork) will look very different to what you’ve been used to up to this point.

Professional Help and Tax Advice

To speak with a professional to discuss HMRC’s current tax avoidance measures, and how you can ensure you won’t fall foul of them, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.

This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

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