As part of an increased effort to recover lost revenue, HMRC has invested heavily to investigate the tax affairs of High-Net-Worth Individuals. This tactic is yielding impressive results.
Breaking it down, for every £1 spent on investigations into these individuals last year, HMRC recovered £30 in tax revenue. In total, this amounted to a whopping £39 billion in the 2022/23 tax year — that’s up by £32.2 billion from the previous year.
And there’s no sign they’re slowing down on this front either. We expect HMRC to continue to invest in investigations leading to more targeted campaigns into the affairs of High-Net-Worth individuals. Indeed, in the Spring 2024 Budget, we find the Government reiterating its efforts to continue to tackle tax non-compliance by making further investments. Yes, they’re gathering steam, and they forecast this will raise over £4.5 billion in tax revenue by 2028/29.
What’s more, the recent advancements in AI mean tax investigations are poised to become more efficient and more effective. The cost of an investigation and the resulting penalties can be severe — so it’s vital that High-Net-Worth individuals organise their tax affairs to reduce to the risk of enquiries.
Our role in supporting taxpayers
We’re a team of experienced tax advisors who can help you navigate the complexities of tax compliance. With a full review of your annual tax affairs, we’ll ensure your tax return is correct, complete, and complies with the UK’s tax regime.
Spotting “high risk areas” in your tax affairs is our skill. We’ve got you covered for all relevant disclosures to the tax authorities to mitigate your risk of HMRC raising an enquiry.
For complex circumstances, there’s always a chance that HMRC will raise an enquiry. Even if the tax return is correct and complete, some investigations are unavoidable. And if that isn’t enough, HMRC can also carry out random investigations.
We provide comprehensive support through every stage of a tax enquiry. Whether it’s strategic guidance on the best way to deal with the enquiries or liaising with HMRC on your behalf to provide them with the right documentation — we work for the best outcome for you.
Where there’s an enquiry afoot, we provide a Tax Fee Protection Service for all our clients. This gives you cover for professional fees incurred for work done on a client’s behalf that relates to an HMRC investigation.
Taxpayers sometimes receive income that they’ve not declared to HMRC. We can assist you with voluntary disclosures, guide you through the disclosure process, and ensure you understand your obligations at every stage. Protecting you from penalties — there’s peace of mind in that.
For more information on tax investigations and what CT can offer, please contact Matthew Burgess at matthew.burgess@ct.me.
