This year, HMRC brought in £20.7 billion from its investigation into tax avoidance, which has been recorded as the highest amount ever collected. Chartered Accountants, UHY Hacker Young, found that HMRC had beaten their own target for the year 2012-2013 and had collected substantially more than the year before in the same investigation, which came to £18.6 billion.
Year on year, this investigation has grown, so much so, that the amount collected by HMRC has doubled since 2007 when the amount was only £8.8 billion. While this may be great news for HMRC, their latest investigations could be seen as aggressive as not all tax has been taken from companies and individuals who are in a position to pay. In many respects, their actions could have future repercussions if they want to attract outside investors to the UK.
HMRC has gradually changed its focus to chasing companies and individuals who CAN afford taxes but chose not to, rather than chasing struggling companies who can’t afford their payments. This seems like the logical and ethical way to handle debt collecting. However other companies in the same market/industry feel it is unfair that some of their competitors are continuing to trade despite having large debts to HMRC. Ultimately, they need to sort the problem by cutting costs and restructuring.
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