Crackdown on tax avoidance and evasion to raise billions for Treasury coffers
The Government said that new measures will recover £4.7bn in tax in tax by 2024/25 that would otherwise have been lost
A crackdown on tax avoidance and evasion should help to raise billions of pounds more for Treasury coffers.
The Government said that new measures will recover £4.7billion in tax by 2024/25 that would otherwise have slipped through the net. It said £4.4billion of this would be clawed back by giving HM Revenue & Customs (HMRC) more staff and better technology.
This will allow officials ‘to further reduce the tax gap through additional compliance activity and expanding debt collection capabilities’, it added.
The UK’s tax gap – the difference between the amount of tax that should be paid and the amount that is actually collected – stands at about £35billion.
Other new measures announced yesterday to reduce the gap included more resources for trading standards and HMRC to tackle the illegal tobacco trade.
This will include the creation of an intelligence-sharing hub for authorities, while a consultation will be held on stronger penalties for tobacco tax evasion.
The Government also said it would clamp down on abuses of tax reliefs and VAT in the construction industry, and take action against traders such as taxi drivers in the ‘hidden economy’ who are not properly registered for tax.