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HMRC collects a billion in advance payments

The taxman has collected one billion pounds in advance payments as a result of its new tax avoidance scheme.

HM Revenue and Customs reached that figure thanks to powers granted in 2014/5 that enable the tax body to collect any monies that have been in dispute in the ongoing war against tax avoidance.

David Gauke, financial secretary to the Treasury, said that the government is determined to stamp on any attempts to avoid tax and that advance payments seem to be the answer.

He said:

“It is no longer possible for these individuals to avoid tax and sit on the money while their affairs are investigated. This first £1bn received in accelerated payments shows that we are turning the tables on those looking to avoid paying their fair share.”

HMRC expects to send 64,000 notices for accelerated payments to both businesses and individuals in tax avoidance schemes. That is far above the 10,000 figure from 2014/2015.

The new scheme was launched as part of the National Insurance Contributions Act 2015 and Finance Act 2014. The notices come into force where a scheme is subject to current regulations regarding anti-abuse and disclosure of tax avoidance, when similar schemes have been unsuccessful in court.

Such schemes are an example of why it is so important for SMEs to keep their books in order. Any red flag will be picked up by HMRC and have the potential to cause headaches for any business. It is far easier to leave this task in the hands of a professional, such as an accountant in the Wirral.

Posted by Mark
September 17, 2015

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