Do you need to protect yourself so that any fees which you may incur in answering an enquiry are covered? With the shortfall in tax revenues to repay government debt HMRC are being funded to collect more tax and taking a more targeted approach. The latest claims figures from the AW Accounting underwriter quite clearly show HMRC activity has increased greatly.
CLAIMS NUMBERS
- “The number of claims made against the 2011/12 year was 46% higher than the previous year.”
- “The number of PAYE and VAT claims made against the 2011/12 year was 84% higher than the previous year, due in the main to the introduction of Taxwise Plus.”
- “There were 4,311 claims made against the 2011/12 year, just 0.04% were outright rejected with no payment made.”
- “In 2011/12 we paid out over £4.5m in claim payments.”
HMRC ACTIVITY
- “HMRC are targeted to deliver an extra £7billion in compliance yield each year by 2014/15.”
- “HMRC are doing what they have always done, they are just doing more of it. A combination of:
- Campaigns targeting taxpayers who declare incorrect tax (e.g. amnesty for electricians and home improvement trades)
- Task forces targeting specific businesses sectors where evasion is suspected (e.g. indoor and outdoor markets in London, restaurants in the Midlands)
- General enquiry activity.”
- “More than 20 targeted taskforces were launched in 2011. HMRC is planning to launch a further 30 by the end of 2012.”
- “The tax gap is estimated to be more than £35 billion – this is the difference between the tax that HMRC thinks should be collected and the amount actually collected.”
- “HMRC have been targeted with reducing costs by 25%, whilst increasing the compliance yield. The Single Compliance Process aims to achieve this, by using HMRC resources more efficiently, by taking a more targeted approach to enquiry work.”
All AW Accounting clients are cover by the Solar Taxwise policy as we think this is a very valuable cover. It includes attendance at meetings with HMRC, not just dealing with enquiries. If you have a specific query relevant to your personal circumstances you should seek professional advice before taking any further steps. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend – Accountants who “speak your language”