HMRC spends quarter of budget on enforcement
Taxman to spend £1bn to try and reduce tax evasion by £2.4bn
HM Revenue and Customs will spend £1bn on enforcement and compliance this
year to reduce tax evasion by £2.4bn,
The
Times has repoted.
This represents one-quarter of HMRC’s entire £4bn budget. Under pressure to
increase the tax take, the Revenue is directing its efforts at areas it
perceives will offer the greatest return.
Last year HMRC adopted a strategy of taking more people to court to recover
tax rather than cut deals in out-of-court settlements, but this has proved
expensive.
Blick Rothenburg partner Toby Ryland says that taxpayers should expect more
inquiries, challenges and general scrutiny of their affairs, even when their
actions are on the right side of the law.
The HMRC figures are the first time that Revenue has broken down its
spending. A further 21 per cent of its £4 billion budget will be spent on IT,
and 18 per cent on personal tax.