Tax fraud and avoidance

Raising Standards in the UK Tax Advice Market: The Government’s next steps appear to be a march into the long grass

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.

New statistics show £300m lost to offshore tax gap on over 7million accounts held overseas likely to be gross underestimate

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

New statistics show HMRC’s clampdown on R&D claims beginning to take effect

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.

Sweet Deception: £4.4bn tax evasion leaves a sour taste for HMRC

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

The SME R&D tax relief scheme: lessons in how not to implement a tax relief

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.

Mining the gap

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

HMRC’s 2024 Tax Gap report: Amount of tax going unpaid hits record high at £39.8bn in 2022-23

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

TaxWatch’s summary of the UK General Election party manifestos

TaxWatch reflects on the party manifestos for the upcoming General Election

The uncertain future of the UK’s Digital Services Tax

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