You are here: Home - Retirement - Retirement planning - News -

Tax avoidance costing exchequer £10bn

0
Written by:
21/11/2012
HM Revenue & Customs (HMRC) has failed to halt the widespread use of tax avoidance schemes.

According to a National Audit Office (NAO) report, HMRC has 41,000 open avoidance cases on its books and the schemes are thought to cost the exchequer £10bn in lost tax.

The NAO said while the tax advance disclosure regime – brought in in 2004 – has helped the department make some important headway avoidance schemes are still being used by large numbers of taxpayers.

It said in each of the last four years, more than 100 new avoidance schemes have been disclosed to HMRC.

“While HMRC believes most of these would be defeated if tested in the courts, there is no evidence that their usage is reducing.” the report added.

Some 30,000 users of ‘partnership loss’ schemes and disguised remuneration have been identified .

“While HMRC believes most of these would be defeated if tested in the courts, there is no evidence that their usage is reducing,” added the report from the government’s spending quango.

Amyas Morse, head of the National Audit Office, said: “HMRC must push harder to find an effective way to tackle the promoters and users of the most aggressive tax avoidance schemes. Though its disclosure regime has helped to change the market, it has had little impact on the persistent use of highly contrived schemes which deprives the public purse of billions of pounds.

“It is inherently difficult to stop tax avoidance as it is not illegal. But HMRC needs to demonstrate how it is going to reduce the 41,000 avoidance cases it currently has open.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2226141-elderly-worker-computer
Over-50s going it alone to be their own boss

Record numbers of UK entrepreneurs are aged over 50, as more and more shun retirement to be their own boss.

Close