HMRC Investigations Double in 12 Months

Recent figures suggest that the number of people being investigated by HMRC has doubled.

In 2011-12 HMRC made enquiries about the tax affairs of 119,000 individuals, whereas, in the 12 months following it is reported that 237,200 people were targeted.

This development underlines the Government’s continued drive to reduce the estimated £35 billion tax which is lost to the economy every year.

It is believed that the number of self-employed individuals being targeted by HMRC has increased fourfold. There was also a raft of professionals, such as doctors, medical consultants and lawyers, who found themselves subject of a HMRC enquiry, and it is believed that given their relatively secure financial status, most individuals were willing to make a settlement with HMRC rather than undergo a full tax investigation.

For some, this has raised concern that the Government’s approach is too aggressive and that people who have innocently made mistakes in declaring taxes will be punished. Many experts believe that people who have made simple mistakes when filling out self-assessment tax firms will be seen as an easy target for HMRC.

There are a number of options available to taxpayers wishing to declare their tax affairs with HMRC. One thing that should be stressed, however, is that an individual should not approach HMRC without advice from a tax investigations professional, as in some cases this can have a negative impact on the investigation and possible outcome.

If you are considering making a voluntary disclosure to HMRC you should contact our team of tax investigations professionals to discuss your position. You can fill out an Enquiry Form or call us anytime on 0113 387 5670.