Public Accounts committee grill HMRC for not having a strategic plan nor reliable estimate for on tax evasion in online retail sector.

Rachel Reeves gives unprecedented new tax discount to a few thousand fund managers worth nearly £500m a year by 2028-29 by moving, rather than closing, the ‘carried interest’ loophole

The Government’s next steps to regulate and improve standards in the UK tax advice market betray the aims and findings of the recent consultation and demonstrate a lack of political will on the issue.

Autumn Budget increases interest charge on late paid tax debt, exacerbating problems with those struggling to pay. Interest seems to be used to raise revenue and drive compliance, a concerning development.

Rachel Reeves’ first Autumn Budget makes for a mixed bag of delivering a fairer tax system whilst raising government revenue

HMRC’s first estimate of the offshore tax gap for 2018, seems a wild underestimate at just £300 million based on questionable methodological choices.

TaxWatch launches our State of Tax Administration report, analysing HMRC’s performance in 2023-24

Latest HMRC figures show the cost of R&D relief claims increasing but in relation to fewer claims being made for 2022-23. This implies HMRC’s compliance changes are discouraging claims that are less likely to be qualifying, especially those of lower value or in particular sectors.

NAO calls out HMRC for not having a strategic plan on tax evasion.

Record levels of tax relief claimed by the creative industries sector in 2023. The reliefs are now dominated by fewer, extremely large, claims for film and ‘high-end’ TV programmes. TaxWatch questions whether these reliefs offer good value for money given the profitability of expensive productions in light of changes to the Audio Visual Expenditure Credit.

Once again, the National Audit Office qualified HMRC’s accounts due to a “material level of error and fraud in Corporation Tax research and development reliefs”. Whilst the good news is that the estimated error rate within the relief is coming down it remains unacceptably high. It has taken years for HMRC to admit there were problems, despite plenty of warnings, and action has been too slow to avoid the situation getting totally out of hand.

TaxWatch analyses the latest tax gap data and examines manifesto pledges to narrow the gap to see whether they represent credible plans to increase tax revenues

TaxWatch analyses the latest Tax Gap publication, noting it has reached £40bn in 2022-23 yet still doesn’t cover offshore matters

TaxWatch reflects on the party manifestos for the upcoming General Election

TaxWatch reflects on the Liberal Democrat proposal to hike Digital Services Tax

Conservative Party to re-introduce age related allowances: TaxWatch’s thoughts on the proposal

The abrupt end to the Parliamentary session leaves several key Finance Bill clauses to the final washup day.

HMRC is being elusive about the amounts due on specific offshore compliance penalties, providing confusing answers to Freedom of Information requests.

The Treasury’s additional funding for HMRC customer service is just a sticking plaster over an ingrained problem that needs a longer-term strategy and consistency of funding to resolve.

HMRC now says offshore tax gap data will be published in June 2024, two years after the government announced it and a year after the information was due.

TaxWatch published an article in Taxation magazine last week about the launch of the Funding the Nation report by ARC, the union for senior staff within HMRC.

While HMRC appears to have stepped up activity against the promotion of tax avoidance arrangements, it seems that increased civil action is at best only containing the total number of schemes.

What are the implications of the additional fiscal support given to the creative industries in the Spring Budget, and do the changes provide value for money?

TaxWatch introduces the latest Government consultation into regulating tax advice market.

The TaxWatch team focuses its thoughts on a few areas of the Budget statement it found particularly interesting, from a tax compliance and administration standpoint.

Abolishing preferential tax rules for furnished holiday lets owners will only raise the speculated revenue if the compliance rules are carefully thought out.

HMRC’s effectiveness is being held back by legacy IT systems, staff and pay reductions and a lack of effective workforce planning.

There are fundamental issues around the subject of compliance for HMRC, which needs, among other things, a proper workforce plan with trained and motivated staff able to deal with all aspects of compliance.

A report about trends in case numbers opened by a niche HMRC team requires a bit of context to judge whether the question it poses is the correct one.

HMRC’s increasingly poor telephone service is impacting its ability to collect the right amount of tax and damaging the wider economy.

Misunderstandings and confusing media coverage last week have created uncertainty about how transactions made via online platforms such as Vinted, Ebay and Airbnb should be taxed.

TaxWatch has lodged a formal complaint to the Institute of Chartered Accountants of Scotland in respect of its member, Douglas Barrowman.

A recent story about multinational companies underpaying billions of pounds of UK tax caught our attention, but it turns out the figures aren’t quite what they seem.

The government’s Autumn Statement 2023 continues to increase the complexity and administrative burden of the UK R&D regime.

Amongst the theatrical showmanship that characterises UK fiscal events TaxWatch pulls out a few of the more interesting announcements made in today’s Autumn Statement.

The extremely high level of tax relief available to the UK’s oil and gas companies compared to all other businesses has the potential to distort private sector investment, TaxWatch believes.

Two proposals in the draft Finance Bill 2023-24 aimed at tackling promoters of tax avoidance have been welcomed by TaxWatch.

Our latest annual report explores the UK Government’s administration and enforcement of the tax system.

New TaxWatch analysis shows how they appear to use complex tax driven structures to reduce their UK corporation tax.

While it’s great news Labour is focusing on tackling fraud, real success depends on fully-funded public services to take appropriate action in those cases.

The tax treatment of furnished holiday properties appears inappropriately generous and could encourage houses to be locked away to save thousands of pounds in taxes.

The Treasury Select Committee has published a report into tax reliefs which calls for regular reviews and the removal of some.

HMRC’s initial data into R&D tax relief claims shows significant underestimates in previous calculations of fraud and error in the schemes.

The amount of tax lost in the 2021-22 financial year was 4.8% of the total tax owed, the same figure as the previous year.

HMRC must do more to deter and punish tax cheats.

HMRC estimates that 31,000 people used disguised remuneration schemes in 2020-21.

What – if anything – can be done about professionals that break the rules?

What does the money achieve?

Key tax takeaways from the Spring Budget 2023.

R&D tax reliefs are not working as intended.

TaxWatch complains to professional bodies about deliberate tax defaulter.

An accountant ‘named and shamed’ by HMRC for alleged involvement in tax avoidance schemes is still a member of ICAEW.

Video Games Tax Relief (VGTR) cost a record £197m last year, more than five times as much as it was anticipated to cost.

A new PAC report argues that the government is “missing the opportunity to recover billions”

TaxWatch Acting Director Alex Dunnagan gave evidence to the Treasury Select Committee on 19th December highlighting the abuse of tax reliefs.

Acting Director Alex Dunnagan has featured in International Tax Review’s list of the 50 most influential figures in global tax.

The Chancellor has missed an opportunity to close the tax gap.

TaxWatch’s third complaint to the professional bodies.

The failure of Sunak’s taskforce highlights concerns over how HMRC compliance is funded.

New report argues how supposedly ‘legal’ tax avoidance could actually be prosecuted as tax fraud

We have recently had an op-ed published in the magazine HMRC Enquiries, Investigations and Powers.

No, the UK is not set to become a high-tax global outlier.

HMRC’s Tax Gap increases for second year in a row on a like-for-like basis.

Etsy’s Irish tax structure revealed.

HMRC’s record on tackling marketed tax avoidance schemes over the last 10 years.

Investors have a chance to increase transparency in Amazon’s tax affairs.

Rockstar games claimed £68.4m in VGTR in 2020-2021, almost double what the whole relief was set to cost on a yearly basis.

HMRC set to receive £161m investment in compliance work.

TaxWatch has lodged a complaint concerning Arthur Lancaster, Director of AML Tax (UK) Limited, and Director of the Knox House Trust of the Isle of Man.

TaxWatch is calling on the Department of Health and Social Care (DHSC) to investigate the fraudulent use of Mini Umbrella Companies in its procurement process.

HMRC’s record on tax fraud has been questioned by two select committees and in several parliamentary debates in recent weeks

TaxWatch is today launching its annual report on the state of tax administration in the UK.

TaxWatch has submitted a complaint to the Tax Disciplinary Panel about the conduct of an individual identified as “Mr Red” in the case of Murray Group Holdings vs HMRC.

GTA developer takes close to 50% of all video game tax relief in 2020.

Three-quarters of Covid support claimed in fraud and error won’t be collected

Analysis by TaxWatch has found that the DWP is spending more than twice the amount being spent by HMRC on recovering an increase in fraudulent payments arising from the pandemic.

New analysis shows that the number of users of disguised remuneration schemes has increased dramatically despite government attempts to legislate against the schemes.

TaxWatch has launched the first stage of legal proceedings against HMRC over their decision to settle a £1bn tax fraud dispute with GE.

HMRC’s policy of “process now check later” can easily be abused by fraudsters.

A TaxWatch Briefing on the Finance Bill 2021-2022.

We analyse the Autumn budget, looking at compliance work, promoters of tax avoidance, R&D relief, and the environment.

£180m paid out in Video Games Tax Relief last year, the vast majority to large multinationals.

US Government set to raise 3x more than rest of the world combined in tax payments from four tech companies after Global Tax Deal.

A new analysis from TaxWatch has demonstrated that tech giants will end up paying less tax under the proposals put forward by the G7 than they are currently liable for under the digital services tax.

TaxWatch has written to the PAC, the NAO, and the Treasury Committee, requesting that inquiries be held into an out of court settlement between HMRC and General Electric (GE).

TaxWatch research has been published by Transparency International, looking at the UK’s reform of its Controlled Foreign Company (CFC) regime.

An analysis of HMRC’s latest Tax Gap estimates by TaxWatch has found that the amount of tax lost to fraud in 2020 was at least £15.2bn.

The Supreme Court has granted permission to HMRC to appeal a decision of the Court of Appeal preventing the tax authority from making allegations of fraud against GE in relation to an ongoing tax dispute.

African countries are missing out on significant tax revenues because multinational tech giants are failing to collect and pay VAT on services.

TaxWatch analysis shows that package agreed at the G7 would lead to a tax cut for tech companies subject to the Digital Services Tax.

Eight tech companies made an estimated £9.6bn in profit from sales to UK customers in 2019, yet only faced corporation tax liabilities of £297 million.

Deloitte and Sports Direct’s major international VAT avoidance scheme revealed.

TaxWatch has taken the preliminary step to intervene in a Supreme Court case between HMRC and General Electric (GE).

Despite the cost of furlough fraud running into the billions HMRC are yet to issue any civil penalties.

MPs and Ministers recognise that the promotion of tax avoidance often involves fraudulent conduct which can leave promoters liable for several criminal offences.

TaxWatch’s research into “super-deductions” featured prominently in a parliamentary debate.

TaxWatch launches new project focusing on the enforcement of the rule of law in taxation.

The Chancellor’s announcement of a “super-deduction” on purchases of capital goods by businesses was one of the largest single-year tax giveaways ever enacted by a government.

TaxWatch’s latest report reveals the huge disparity between the way in which benefits crime is treated when compared to tax crime. 

TaxWatch has been listed in ITR’s Global Tax 50 2020-21, which highlights “the most influential figures and events in fiscal policy over the past year, while noting who and what will be particularly important in 2021.”