HMRC’s focus on investigating tax avoidance schemes has brought in an additional £886m in income tax over the last year, an 80% hike on the previous year’s total of £494m, according to analysis by law firm Pinsent Masons
The law firm says the figures relate to the counter avoidance directorate, set up in April 2014, to clamp down on the promotion and use of avoidance schemes specifically.
Paul Noble, tax director at Pinsent Masons, said: ‘The counter avoidance directive has significantly boosted tax take this year, and it is likely that HMRC and the Treasury will continue to pour resources into its work.’
Noble pointed out that new initiatives such as the accelerated payment notices regime, are starting to have an impact, while the Panama Papers scandal has focused attention on HMRC’s efforts to deal with large scale tax avoidance.
‘HMRC wants to demonstrate that no one is out of its reach. It therefore makes sense, that anyone who suspects a scheme they are involved to weigh up their options for either exiting or litigating and in doing so should take independent professional advice.
‘Collections as a result of investigations into tax avoidance schemes has almost doubled this year, and HMRC will see this as a successful validation of their approach,’ he said.
