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HMRC keeps close eye on rapid risers

An HMRC team working exclusively to investigate taxpayers showing quickly increasing income appears to have done its job, with a 35% rise in collected tax.

The HMRC Rising Stars team, established in 2012, investigates individuals showing quickly increased income with a minimum of £25m net worth, and anyone who it believes to show potential for meeting its £20m wealth criteria for its High Net Worth unit over the next few years. This might include celebrities, along with anyone who has quickly made their way to the top in financial services companies

Fiona Fernie, a partner in law firm Pinsent Masons, said that those being investigated are likely successful entrepreneurs or people given a quick route up the ladder in financial services companies and investment banks.

Fernie added:

“Monitoring these taxpayers from an early stage is likely to result in more efficient scrutiny as they move into a higher wealth bracket.

“Units focused on High Net Worths also tend to have a smaller ratio of taxpayers to officers which means resources are more concentrated. Investigations tend to bear more fruit as a result.”

Ultimately, HMRC investigates any business it has reason to believe may otherwise get away with paying less tax than it should. That’s why it’s wise to call upon the services of an accountant in the Wirral to ensure that any numbers looked into are exactly as they should be. If anything is out of place, such measure could save a client a lot of financial pain in the long run.

Posted by Louise
May 7, 2015

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