TaxCorporate TaxRaise HMRC budget to slash deficit: PKF

Raise HMRC budget to slash deficit: PKF

PKF says extra £20bn could be raised in three years by additional recruiting at HMRC, backed up by a national tax amnesty

Calls have been made for George Osborne to increase rather than cut HM
Revenue & Customs funding if he is serious about reducing the £167bn public
deficit.

By recruiting additional staff and introducing a national tax amnesty, the
Chancellor could rake in an extra £20bn in the next three years, PKF said.

The ‘tax gap’ between what HMRC estimates it should collect and what actually
flows into the UK’s coffers stands at a reported £40bn, the firm said.

Yesterday the government announced that up to £190m of the current cost
savings are to be achieved by a freeze on non-frontline civil service
recruitment, but PKF is urging the government to ensure these cuts do not affect
HMRC.

Philip Fisher, head of employment taxation and rewards at PKF, said further
reductions in HMRC staff numbers and capability would be a “false economy”.

“A far better solution would be to give HMRC the resources to work
effectively,” said Fisher.

Further reading:

Osborne
warned over hasty tax decisions

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