HMRC is defiant is retrieving as many revenue streams it can possible and one unit The High Net Worth Unit established in 2009 is already hitting record levels of success.
The unit, scrutinising the affairs of 5,800 people with assets of £20m or more, increased its yield from tax enquiries by 10%, having collected £200m in 2011/12.
Exchequer secretary to the Treasury, David Gauke, said: “HMRC’s high net worth unit provides the specialist attention they require in ensuring the wealthy pay the tax they owe. This government has reinvested almost £1bn in HMRC and expects them to deliver almost £22bn in 2014/15.
Meanwhile the HMRC department is making quite clear its intention to those who do not pay VAT by seizing assets to counterbalance the shortfall. It is thought that the stepped up initiative along with the hiked 20% VAT rate has added to the staggering 98% rise made in just one year.
Syscap an independent finance provider has been elected to find offenders and deal with the problem, a spokesperson for Syscap said “Small businesses need to be aware that HMRC is becoming more and more aggressive in claiming the VAT payments it is due from businesses,”
“As VAT bills are payable on invoiced work rather than receipts, many businesses will find themselves paying tax on work they haven’t yet received payment for. These businesses are likely to have invested money up front in fulfilling contracts, putting further strain on available cash.
A spokesman from HMRC said: “The government has given HMRC almost £1bn to tackle tax evasion, fraud and avoidance. HMRC is using this money to increase staffing in key teams, deliver an additional £20bn and increase criminal prosecutions for tax fraud fivefold by the end of the 2015.
“The vast majority of taxpayers are honest and pay what they have to under the law, so it is only right that we tackle the small minority of cheats who deprive the country of vital revenues.”
These statistics show how important it is that both companies and individuals keep their VAT affairs correct, fair and transparent and for those who work in these departments to adopt these good business practices.