As HMRC increase the number of investigations into those contractors operating through limited companies or as sole traders, it is recommended that such individuals seek specialist accountancy advice. HMRC have pledged to seize an extra £4 billion through investigations. UHY Hacker Young have predicted that £16.1 billion will be seized overall due to HMRC’s “more aggressive stance” throughout this tax year.
UHY Hacker Young believe that in order to seize such large sums of money, HMRC will be looking to “widen the scope” of its investigations including investigations of cases considered ‘marginal’.
UHY Hacker Young’s John Lerston commented: “£4 billion more tax is a massive increase that shows how urgently the Budget deficit needs to reduced. To achieve such an extreme target, HMRC will be forced to come down hard on legal tax avoidance and illegal evasion.”
Martin Hesketh from contractor accountancy firm Brookson, responded: “This news is further evidence of HMRC’s commitment to target tax evasion generally. At Brookson, we have always held the view that strong enforcement action is required by HMRC if they are to drive up levels of compliance across all tax legislation.”
He concluded: “It is now more important than ever for contractors to seek professional advice from specialist accountants and lawyers to ensure they are working compliantly and their financial and tax affairs are in order.”