Member Article

HMRC recruit into their affluent tax teams

Their Affluent Compliance Team is to recruit 100 additional inspectors due to the expansion in their work. They deal with the more wealthy members of society, which includes those with an annual income of more than £150,000 and wealth of between £2.5 million and £20 million. The unit will also cover those with wealth in the range £1 million to £2.5 million.

The team currently has 200 staff based in17 teams in six locations across the UK and they target wealthy people who:

• habitually use avoidance schemes

• have a low effective Rate of Tax across their total income

• have bank accounts in Switzerland who appear to be understating their tax

liability

• fail to file their Self Assessment return on time

• avoid or evade Stamp Duty on property purchases

• have UK and offshore property portfolios.

Exchequer Secretary David Gauke said: “HMRC set up the new Affluent Teams from some of the £917 million we made available in 2010. The team has made a great start by bringing in £75 million in additional tax that would otherwise have been lost to the country.”

“The vast majority of people pay their way. Dodging tax is immoral, illegal and unaffordable and the minority who cheat are increasingly finding that, thanks to the work of the Affluent Team, they have made a big mistake.”

Roger Atkinson, Director of the Affluent Teams, said: “In September 2012 the Government announced an additional investment of £5 million, enabling us to recruit an extra 100 inspectors. We will recruit from within HMRC and externally and the new team will be fully operational by April and focused on delivering an additional £75 million a year.”

Andrew Swan, financial crime Partner at Short Richardson & Forth LLP commented: “The average man in the street generally views the wealthy as the ones able to avoid paying their taxes. It is quite apparent that HMRC are taking a much tougher stance on tax evasion at all levels. My firm are defending more such cases than ever before and I anticipate a lot more making their way to the criminal courts. Anyone subject to HMRC investigation should take professional advice as early as possible.”

This was posted in Bdaily's Members' News section by Short Richardson and Forth LLP .