THE NUMBER of people being investigated by the HM Revenue & Customs has doubled in one year, figures disclosed under the Freedom of Information Act show.
HMRC made inquiries about the tax affairs of 237,215 people last year, compared with about 119,000 in 2011/12.
The number of self-employed people investigated has quadrupled in that time while annual prosecutions have risen sevenfold in three years.
Rather than reflective of any particular campaign, HMRC said the jump is a result of changes in reporting methodology – in particular results from systems that were previously reported separately were now reported within their relevant regime, and the introduction of the case flow system, which altered the basis on which cases were counted.
An HMRC spokesman said: “Most of the increase in personal tax enquiries is due to changes in how we calculate the numbers of enquires carried out. Enquiries are only opened where we believe there may be a problem causing the wrong tax to be paid.”
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward