Tax BodiesHMRC launches plans to tackle black economy

HMRC launches plans to tackle black economy

HMRC has launched three consultations on proposals to clamp down on the black economy

HMRC has launched three consultations on proposals to clamp down on the black economy.

The proposals include extending HMRC’s data gathering powers, forcing more business to register for tax purposes in order to access business services and licenses, and new penalties for compliance failings.

HMRC wants to extend its bulk data-gathering powers to include customer data held by money service businesses (MSBs to help it identify non-compliant customers trading in the hidden economy.

It is also consulting on introducing conditionality, whereby access to some business services or licences should be dependent on businesses being registered for tax. Conditionality could help to make it as easy as possible to register for tax, and as difficult as possible for non-compliant businesses to evade their responsibilities.

The taxman is also looking at the potential for new penalties and sanctions to tackle those operating in the hidden economy, including those who have already been penalised for non-compliance, but have not changed their behaviour.

This consultation proposes some options for new sanctions, and seeks views on how those might be designed fairly and effectively to deter hidden economy activity.

The consultation looks at several ways it could introduce an escalating penalty regime and also considers new approaches to penalties for inaccurate returns, and for employers who fail to make PAYE returns.

Related Articles

OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

5m Alia Shoaib, Reporter
Treasury Select Committee report released on Making Tax Digital

Accounting Standards Treasury Select Committee report released on Making Tax Digital

11m Stephanie Wix, Writer
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

11m Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

11m Stephanie Wix, Writer
Making Tax Digital: the "unexpected item in the bagging area"

Accounting Standards Making Tax Digital: the "unexpected item in the bagging area"

11m Stephanie Wix, Writer
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

Business Regulation Finance Bill 2017: Corporate tax reporting requirements 'a burden'

1y Stephanie Wix, Writer
PAC raises “serious concerns” about HMRC’s digital plans

Corporate Tax PAC raises “serious concerns” about HMRC’s digital plans

1y Stephanie Wix, Writer
ACCA announces partnership with RD Tax Solutions

Accounting Standards ACCA announces partnership with RD Tax Solutions

1y Stephanie Wix, Writer