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HMRC in the news again

The fight against inefficient tax avoidance schemes goes on as HM Revenue & Customs prepares to send tens of thousands of “follower” demands to people who have invested in tax avoidance schemes. Under new rules the tax supposedly avoided is due and payable up front until the validity of the claim is established – a process that can take years.


Receipt of such a demand will be a horrible experience for the thousands of “ordinary” people who have invested in such schemes – the media may concentrate on the rich and famous but it’s not just them who are investors.


The other hot potato is something that is being called “DRD” – the direct recovery of (tax) debts from the taxpayer’s bank accounts. The professional institutes – and we at robinson+co have members in the major accountancy and tax institutes - are all against this proposal.


Although H M Revenue & Customs says that proper controls will be in place, these do not include approval from the Courts, which many are demanding. The controls also do not take into account the possibility of human or computer error – both of which are not unknown within HMRC!


Let’s hope HMRC changes its mind!


If you have any queries about these matters, please contact Victoria Bishop, robinson+co’s Tax Partner on 01900 603623.

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