News sources have reported this week that the crackdown on taxes has generated record revenue for the UK government. What could the ongoing tax crackdown in this country mean for your tax planning?
Prestige Tax and Trust Services exists to advise you on a number of related topics including pension planning, conveyancing, executorship, trust inheritance tax etc. One of our key areas of expertise is tax planning, and we know that any adjustment to UK tax policy could bring changes you need to know about.
Tax Crackdown Generates £23.9 Billion in Revenue
Over the past year, UK tax inspectors have launched multiple investigations to ensure that citizens across the country are adequately fulfilling their tax obligations. The Guardian has now reported that these efforts generated an extra £3.2bllion in revenue for the tax office this year.
Specifically, the publication reported that HM Revenues and Customs (HMRC) revealed that the government acquired a record £23.9 billion in tax revenue, which was £9 billion more than three years ago, and nearly £1 billon more than the target set by Chancellor George Osborne in his 2013 Autumn Statement.
Broken down, these figures show that big business played a major role in the revenue hike, as at least one third (£8 billion) came from this sector of UK society. Furthermore, it was revealed that £1 billion came from criminals and £2.7 billion was pulled in through tackling tax avoidance schemes through the courts.
“HMRC Will Pursue Those Seeking to Avoid Their Responsibilities”
David Gauke, Secretary of the Exchequer, spoke out on the latest figures. Gauke said that: “The government supports the hard-working, honest majority of taxpayers that play by the rules, and is determined to tackle the minority that seek to avoid paying the taxes they owe.”
Gauke further said: “We set HMRC ambitious targets to increase its yield and the figures published today demonstrate that HMRC is successfully meeting these challenges. It also sends a clear signal – HMRC will pursue those seeking to avoid their responsibilities and will collect the taxes that are due.”
At Prestige Tax and Trust Services, we believe the message is clear – tax planning is essential to fulfilling your tax obligations. These figures show that the government is more committed than ever to catching those who contravene their rules, so you have to make sure you are following said rules to the letter.