Figures suggest that criminal prosecutions for tax evasion has more than doubled in the United Kingdom during the last tax year, following claims that small time offenders suspected of defrauding the taxpayer are being targeted more frequently.
The figures compare those successfully prosecuted during 2012/13 when HMRC successfully prosecuted 617 individuals, to 302 individuals in 2011/12 showing the figures more than doubling and ahead of HMRC’s target of 565 for the year. However, critics say that the figures for 2011/12 are ‘artificially low’. It could be argued that in order to hit their targets and maximise the deterrent effect, HMRC is now taking action against the kind of tax evaders that would previously have been seen as relatively small time. This basically means criminal cases being brought against professionals and trades people who are evading what are relatively small amounts of money.
Buy-to-let investors are increasingly under the scrutiny of HMRC as are those in positions of trust, such as lawyers, doctors or financial consultants, despite denial from HMRC that the government agency was specifically targeting defined groups. Previous campaigns aimed at doctors, plumbers and electricians raised more than £600m in unpaid taxes.
If you are worried that you might have forgotten to tell HMRC about a source of income or capital gain you should consider telling the taxman before he catches you. You can usually get much more favourable treatment if you tell them first and they are very unlikely to prosecute.
Please contact us if you are in doubt and our tax department would be happy to provide you with more details.
Scott Burkinshaw
Scott is Tax Partner at Shorts, specialising in providing strategic corporate and personal tax advice.
View my articlesTags: Business Taxes
