Tackling non compliance

The Chancellor in her Spring Statement made further announcements about tackling the tax gap. The Spring Statement included:

"investing in HMRC’s debt management capacity, including an innovative test and learn pilot to collect more aged debts, and moving towards more automated debt recovery. The government is additionally investing in recruiting 500 more HMRC compliance staff, building on the 5,000 new compliance staff whose recruitment was announced at the Budget last autumn".

Also announced were 4 consultations:

? "How HMRC can make better use of third-party data to increase automation and close the tax gap.

? Proposals to strengthen HMRC’s ability to take action against those tax advisers who facilitate non-compliance from their clients.

? A comprehensive package of measures to close in on promoters of marketed tax avoidance, whose contrived schemes leave their clients with unexpected tax bills.

? Options to simplify and strengthen HMRC’s inaccuracy and failure to notify penalties"

Additionally the Government hopes to:

• "Prosecute more tax fraudsters
• Reform rewards for informants
• Tackle “phoenixism”"

Additionally :

"HMRC is overhauling its approach to offshore tax non-compliance by the wealthy, recruiting experts in private sector wealth management and deploying AI and advanced analytics to help identify and challenge those who try to hide their wealth, wherever they try to hide it. During the next five years, the government will increase HMRC’s resource assigned to tackling wealthy offshore non-compliance by around 400 people, who are estimated to bring in over ￡500?million over the forecast period".