HMRC get aggressive

HMRC taking more aggressive approach to compliance

Chancellor Rachel Reeves is intensifying efforts to tackle tax evasion and avoidance, announcing a significant increase in tax investigations. HMRC has opened 93,000 investigations in the last quarter, a notable rise from the average of 78,000. With an additional £1.4bn allocated to hire 5,000 new tax investigators, Ian Robotham, legal director at Pinsent Masons, stated: “These extra resources will see HMRC deliver more investigations and more prosecutions for tax fraud.” The focus is particularly on inheritance tax. Neela Chauhan from UHY Hacker Young warned that taxpayers must ensure accurate estate planning to avoid scrutiny, as HMRC employs advanced data analysis tools, including the HMRC Connect supercomputer, to track down discrepancies. The tax authority is also leveraging social media and online trading platforms to monitor compliance, aiming to recover an estimated £5.5bn from evasion.