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| CURRENT SECTION :: Money News | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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The Revenue is gearing up to scrutinise taxpayers about potentially undeclared investment income, in a clampdown that advisors fear could be its most far-reaching to date. From the spring, the taxman’s campaign to tackle underpayment of tax, by offshore and buy-to-let investors, will extend to share dividends, bonds and interest on UK accounts. This so-called ‘lighter-touch’ intervention will see its officials contact taxpayers by phone, letter or in person to discuss aspects of their tax affairs it deems at ‘high risk’ of error. Although there is no requirement for taxpayers to comply, advisors said the Revenue’s scrutiny should be treated seriously, to avoid its more aggressive stance for tax avoiders. Tax experts at UHY Hacker Young, which used the Freedom of Information Act to learn of the Revenue tactics, also said the authority would continue its scrutiny of offshore accounts. A second batch of letters to taxpayers with overseas deposits was about to be issued, the firm said, on top of the 5,000 already sent, and the 7,000 buy-to-let investors have received. Despite the impressive-sounding numbers, a far greater amount of taxpayers have investment income in shares, bonds and bank accounts, than gain income from property or have offshore accounts. Roy Maugham, a tax Partner at UHC, reflected: “A campaign targeting taxpayers with investment income could be the most far-reaching of all in terms of the number of taxpayers contacted.” He criticised the performance of the Revenue’s compliance campaigns to date by pointing out they had cost much more than they yielded. “HMRC is ploughing on with new interventions targeting taxpayers with investment income despite the worry this will cause to taxpayers and the lack of success from previous campaigns. “It seems particularly inappropriate at a time when many people will have made very significant capital losses on the same investments that might be providing them with a very small income.” Figures released by HMRC last year revealed that the new interventions, including buy-to-let and offshore account, cost national taxpayers nearly twice as much as the additional tax they yielded. Nov 7, 2008 Email this article Printer friendly page Previous Page
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