Alongside the Spring Statement, the Government has announced two consultations as part of their efforts to tackle tax avoidance: https://www.gov.uk/government/consultations/closing-in-on-promoters-of-tax-avoidance/closing-in-on-promoters-of-marketed-tax-avoidance this closes on 18th June while the second: https://www.gov.uk/government/consultations/enhancing-hmrcs-ability-to-tackle-tax-advisers-facilitating-non-compliance closes on 7th May.
“While these two consultations announced today are well intended, the answer to the perpetual question of how to close in on the promoters of tax avoidance is easy – tap into your data HMRC,” said Crawford Temple, CEO of Professional Passport. “HMRC is sitting on a goldmine of data that could have crushed tax avoidance schemes years ago, yet they’ve chosen to twiddle their thumbs. By failing to cross-reference intermediary reports and real-time payroll data, HMRC has effectively created a playground for tax avoiders.”
Crawford goes on to say that sluggish and slow enforcement mechanisms have transformed what could have been “a precise surgical intervention” into a widespread compliance crisis with the economy is suffering as a result. “For years, HMRC has watched non-compliant umbrellas flourish while launching yet more consultations. Every moment of hesitation is an invitation for tax dodgers to thrive. The time for analysis is over – the time for action is now.”
