HM Revenue and Customs (HMRC) has recouped more than £1 billion in tax compliance through its High Net Worth Unit – a specialist unit setup to specifically deal with the tax affairs of the UK’s wealthiest individuals.
The division, first started in 2009, focuses on the tax activity of the 6,200 wealthiest individual customers of HMRC, believed to be worth more than £20 million each.
Each individual is given a relationship manager who is well versed with dealing with tax risks for wealthy individuals.
This division maximises voluntary compliance while ensuring that HMRC can reprimand those who break the rules.
As a result, HMRC can deliver good customer engagement with a strong focus on influencing behaviour to increase compliance over the next few years.
David Gauke, Financial Secretary to the Treasury, said: “HMRC vigorously polices the rules ensuring it collects the tax that is due, and takes tough action against the minority who seek to avoid their responsibilities.
“This approach is clearly working as HMRC’s High net Worth Unit has delivered £1 billion in compliance yield.
“This is against targets totalling £894 million and is further evidence that the government’s investment of nearly £1 billion in HMRC to tackle avoidance, evasion and fraud is paying off.”
Early in July, HMRC disclose the compliance yield estimates to Parliament, whilst adding that they had recently obtained a £135 million from individuals from a HSBC owned private Swiss bank.
According to the Treasury’s database, the UK recouped around £550 billion in taxes during 2013 – a figure equivalent to 36% of the country’s GDP.
Don’t take the risk by assuming everything is ok. If you have any doubts please contact KinsellaTax immediately on 0800 471 4546.