Following the recent announcement that HMRC could have powers to raid bank accounts of those it suspects of tax avoidance, there have been concerns raised from many quarters.
The Law Society’s Tax Committee is the latest voice to demonstrate its view, with the chairman questioning why HMRC cannot operate under procedures that other creditors have to follow.
HMRC’s proposed powers would allow it to recoup the amount of tax it believes is owed directly from bank accounts of individuals. The proposal is currently undergoing a consultation process, but is one of the latest tactics in a continued clampdown on tax avoidance in the UK.
It is believed that the powers would be exercised on those that have had avoided paying tax and have refused to pay despite notices. HMRC says that it will only recover amounts of debt over £1000 where the individual has at least £5000 in their account.
Other concerns have been raised about the potential impact on vulnerable people and whether this could be the cause of bankruptcies for many.
HMRC will continue in its plight to recoup unpaid tax from UK individuals and small businesses in order to reduce what it estimates as a £7bn deficit.
For those you suspect that they may fall under investigation by HMRC for alleged tax avoidance, the net continues to close. It is essential that you seek expert advice from a tax investigations professional in order to clarify your tax position, and if necessary, negotiate with HMRC on your behalf in order to reduce the possibility of higher financial penalties, and in extreme cases, criminal convictions.
For more information and to speak to a tax investigations professional in complete confidence call 0113 387 5670 or fill out an Enquiry Form .