HMRC Affluent Unit

As HMRC continues to clampdown on tax avoidance and evasion in the UK it has been reported that through the targeting of what is considers ‘affluent’ individuals, it has recovered 60% more unpaid tax in 2014.

According to the data from HMRC, approximately half a million individuals in the UK fall into the category. Essentially, those targeted for unpaid tax have wealth in excess of £1million or annual incomes of over £150,000.

In 2011 HMRC set up the specialist Affluent Unit to target individuals who fall into this criteria. In 2013 it was reported that an additional 100 tax inspectors were recruited. The unit also works in conjunction with HMRC’s High Net Worth Unit, which targets the ‘super rich’ including celebrities and the like.

HMRC figures show that in 2014 through tax investigations the Affluent Unit recovered £137.2million in unpaid tax. Given the increase in money recovered, the government believes that the additional resource being put into HMRC is justified.

In order to increase lines of investigation and to gather more intelligence and evidence against individuals suspected of tax avoidance, HMRC introduced a computer system in 2010. The system, which was developed by BAE Systems is reported to have cost £45million, but assists in the investigations process by collating data about individuals from a number of sources, such as councils and banks. HMRC has also begun to look at social media as a way of supporting evidence in investigations.

The developments seems to suggest, that with a large tax deficit that the government is keen to redress, HMRC is taking an increasingly aggressive approach in targeting those it suspects of more serious tax avoidance.

For those who suspect they may fall onto HMRC’s radar, the time to act is now. The increased resources, new initiatives and tactics mean that HMRC will continue to close the net and clampdown further on tax avoidance and evasion in the UK.

If you would like to discuss your circumstances in complete confidence with one of our tax investigations professionals call us on 0113 387 5670 or complete an Enquiry Form and we’ll get back to you straight away.