Wednesday 3 April 2013

HMRC's Five Year Drop Ins - Put The Kettle On!


HMRC has decided to get heavy with those who eg evade VAT and those who become deliberately insolvent in order to "avoid" paying tax.

The new "heavy approach" will begin a programme of unannounced visits from tax officials, combined with in-depth compliance checks on those who have already received tax penalties over a period of two to five years.

The press release issued by HMRC on the subject appears more akin to an article in a tabloid "news"paper, rather than an official announcement of a "reworked" policy by a government department:
"Tax cheats who become insolvent to dodge their companies’ tax obligations face up to five years’ scrutiny from HM Revenue and Customs (HMRC)."
The "reworked" procedure (seemingly the Managing Deliberate Defaulters (MDD) scheme, which was launched in 2011 and aimed to keep tax cheats on the straight and narrow through close monitoring didn't work - otherwise why replace it?) will include evaders who:

* have received a civil evasion penalty for dishonestly evading VAT; or
* are required to give a security deposit for VAT, Environmental Taxes, PAYE or NICs; or
* become deliberately insolvent as a way of dodging their business taxation obligations.

David Gauke, Exchequer Secretary to the Treasury, is quoted:
"Increasingly, evaders are using contrived insolvency to evade tax, either through liquidation of a business or bankruptcy of an individual. 

It is only fair that someone who has deliberately tried to evade tax should face extra scrutiny from HMRC."
Given that HMRC are also providing voluntary home visits to those who want help with taxes (as it will be closing its enquiry centres) I wonder if there are sufficient staff within HMRC to be able to "drop in" as frequently as implied?


Tax does have to be taxing.

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2 comments:

  1. Unannounced visits are nothing new and were used before HMRC was created and you could only visit if you gave notice.
    It might be deemed as "protecting the revenue" which is pretty basic as concepts go.
    Rut who is left to do the visiting, I know, lets have a visiting "task force" costing additional £'s from who knows where.
    Wonder if the dozy twits will do their homework and H&S checks before trying to bully what might not be a simple shopkeeper?

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  2. Sure looks like a repackaging/rebranding exercise. Probably out of the HMRC "Skunk Works" think-tank using a blindfold and a pin no doubt. Still it makes for a sound bite during an otherwise quiet week.

    Wonder if this part of the "service" to the "customer" will be in line for privatisation and handing over to G4$sss, or even a Blackwater offshoot.

    BTW, when is RTI due to fall over, I mean commence?

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