Did you know?

Did you know?

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The House of Commons Library has published a paper called “Tax Avoidance: recent developments” which considers the issue of tax avoidance in the UK and what is being done to combat it. The paper is 90 pages long, but we’ve found a few interesting quotes and statistics:

  • According to a former HMRC Anti-Avoidance Director, a good example of legitimate tax planning is putting cash into an ISA account
  • The tax gap stands at £36bn in 2015/16. It reduced as a percentage of total tax liabilities from 8.3% in 2005/06 to 6.5% in 2013/14 (but has since levelled out)
  • There has been a large reduction in the PAYE tax gap as a result of, it is claimed, Real Time Information
  • Avoidance only accounts for about 6% of the tax gap, compared to 14% for tax evasion and 17% for the hidden economy, the latter including moonlighting and “ghosts” unknown to HMRC
  • 36,000 Accelerated Payment Notices were issued in 2015/16, collecting £2.1bn.  Of this, only £14m was refunded after legal challenges.  Only 282 Follower Notices were issued in the same period but collected more than £200m
  • Of the first 46,000 APNs issued, 15,000 representations were made but 89% of the APNs were upheld as valid
  • HMRC have a current win rate of 80% of all avoidance cases taken to Court

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