HMRC has revealed a dramatic jump in its revenues thanks to its recent measures aimed at clamping down on tax avoidance schemes.
An extra £23.9bn generated
During the course of the tax year 2013/2014, HMRC claims that it has generated an extra £23.9 billion in tax; a staggering figure, especially considering it puts them £1 billion ahead of a target set by the Chancellor, George Osborne.
An extra £100bn to come?
Announcing the figures, HMRC was in buoyant mood, also revealed that it expects to allocate another £100 billion of extra tax to the period between May 2010 and March 2015, due to its tax evasion investigations.
The figures revealed for 2013/2014 show an increase of £3.2 billion on the previous year, as HMRC begin to feel the effect of the more targeted resistance to aggressive and illegal schemes the government had previously promised.
Down the back of the sofa?
£2.7 billion of the increased revenue involved HMRC tackling avoidance schemes in the courts, whilst £1 billion was recouped from criminals.
The largest contributor to the increased tax windfall however was large businesses, who account for £8 billion of the 2013/2014 increase.
Treasury Minister, David Gauke, commented on the increase in revenues, saying that they were due to ‘increased activity’ and adding that, “HMRC will pursue those seeking to avoid their responsibilities and will collect the taxes that are due. The government is determined to tackle the minority that seek to avoid paying the taxes they owe.”
The money seized by HMRC is in addition to regular tax receipts and is the largest increase in tax receipts since records began.
Well done us?
This is very welcome news. Many of the tax schemes we have seen were at best an interesting take on the tax rules at worst downright offensive.
It’s good to see HMRC getting to grips with these tax schemes and getting more from criminals.
However, aren’t we, the general public responsible for the biggest contributor? Without some very public naming and shaming flowed by some boycotting should we be getting the credit for large business coughing up an extra £8bn?
Your thoughts below please.
Sources: citywire.co.uk, bbc.co.uk