More people are being sent to prison for tax evasion in the UK according to figures from HMRC.
The figures show that the number of individuals jailed for tax evasion has risen by 29% between 2011 and 2014 from 171 to 220. However, the average jail term for those sentenced has declined considerably during the period.
HMRC has continued to clampdown on tax evasion on all scales, both nationally and internationally. It can be assumed that the reduction in prison sentence terms is as a result of efforts to target smaller scale tax evasion.
According to the figures from HMRC the average jail term for tax evasion has reduced from 41.3 months in 2011 to 17.7 months in 2014.
When the coalition government came to power in 2010 it announced plans to increase the number of prosecutions for tax evasion fivefold. HMRC also set a target to refer 1,165 cases of ‘non-organised’ tax fraud to the CPS in 2014-15, a rise from 165 in 2010-11.
The figures suggest that HMRC continues to take a tough stance on tax evasion and tax avoidance in the UK, and the reduction in jail terms is evidence that HMRC is using the powers necessary at its disposal in order to punish smaller scale tax evasion in the UK.
With HMRC having targets to hit, it seems that the approach will be a zero tolerance one towards tax evasion, no matter the scale of the offence. For those who may have underpaid tax to HMRC should seek to clarify their tax position and explore the voluntary disclosure facilities that currently exist.
As of the end of 2015, a number of HMRC voluntary disclosure facilities will no longer be an option, so for many, the time to act is now.
To discuss your affairs in complete confidence with a member of our tax investigations team you can call us on 0113 387 5670 or fill out an Enquiry Form and we’ll make contact with you straight away.