January 28th 2022 2:31 pm

Written by Roger Leach

home :: tax news :: general

HMRC Myths Busted!

HMRC 'mythbusts' common misconceptions about the UK's tax collector.

In response to inaccurate claims about HM Revenue & Customs floating about, the Taxman has taken to releasing a press release directly addressing the most common stories it seeks to clarify.

    No 'sweetheart deals'

    There are no special deals or discounts made when collecting tax, regardless of the size of the entity or amount of tax owed. From multinationals to an individual self assessment, HMRC state the official tax rulebook is used for all.

    They go on to state, if a tax collection amount is disputed, the process to argue the amount is the same legal process for individuals through to businesses and large global giants.

    If a lower amount of tax is collected than originally deemed it will only be based on what is deemed in any final court tribunal - with the National Audit Office (NAO) keeping an eye on settlements to make sure they are fair and reasonable for all taxpayers.

    All taxpayers must pay what is owed.

    Of the 2,000 largest businesses in the UK, around half are under investigation by the Taxman at any point in time - compared to 10 percent of smaller businesses.

    HMRC chases larger companies more so than smaller ones due to the ability for larger entities to attempt to sidestep tax compliance through loopholes and legal interpretations. In the 20/21 tax year, large business investigations brought in an extra £13.2 billion in previously under or unpaid taxes.

    HMRC makes claim to their world-class low tax gap, with 97.5 percent of tax due collected.

    HMRC did all it could to tackle fraud and error in pandemic support schemes

    Recent headlines have shown the billions written off (£5.8 billion) by the Chancellor due to fraud in the various pandemic financial support schemes, from loans to furlough to eat out to help out.

    HMRC's response states a number of measures were in place to protect public money when making financial support available to claimants. A total of £81.2 billion was handed out through various schemes with the £5.8 billion fraud/error cost equating to a 7 percent loss - a percentage HMRC says is in line with what was planned/expected at the outset.

    There was 8.7 percent fraud/error rate in the furlough scheme, 2.5 percent fraud/error rate in the SEISS schemes, and 8.5 percent fraud/error rate in the Eat Out to Help Out scheme.

    There are over 1,000 staff specifically working to combat fraud in these schemes at a cost of £100 million - with expected recovery of £0.8 to £1 billion by 2023.

    HMRC customer service is good despite working from home

    Since March 2020 at the very start of the pandemic, staff at HMRC have been transtitioned to working from home. The latest stats show customer service has improved with call wait times reduced by 4 minutes on average with a return to pre-pandemic support levels on track.

See more articles from January 2022

Keywords:

Topics
Election - 33 available Personal Tax - 268 available Uk Budget - 88 available Welfare - 6 available Autumn Statement - 23 available Fraud - 13 available Business Tax - 31 available General - 67 available Expenses - 9 available Spring Statement - 7 available Tax Return - 39 available Self Employed - 21 available Limited Company - 4 available Benefits - 1 available Company Cars - 3 available
Browse Archives:
October 2024 - 6 available September 2024 - 3 available August 2024 - 4 available July 2024 - 5 available June 2024 - 7 available May 2024 - 5 available April 2024 - 2 available March 2024 - 6 available February 2024 - 2 available January 2024 - 4 available December 2023 - 3 available November 2023 - 4 available October 2023 - 4 available September 2023 - 2 available August 2023 - 2 available July 2023 - 2 available June 2023 - 4 available May 2023 - 5 available April 2023 - 2 available March 2023 - 6 available February 2023 - 4 available January 2023 - 7 available December 2022 - 6 available November 2022 - 4 available October 2022 - 5 available September 2022 - 9 available August 2022 - 3 available July 2022 - 3 available June 2022 - 3 available May 2022 - 4 available April 2022 - 3 available March 2022 - 3 available February 2022 - 4 available January 2022 - 4 available December 2021 - 4 available November 2021 - 3 available October 2021 - 3 available September 2021 - 3 available August 2021 - 3 available July 2021 - 6 available June 2021 - 2 available May 2021 - 4 available April 2021 - 3 available March 2021 - 5 available February 2021 - 3 available January 2021 - 9 available December 2020 - 5 available November 2020 - 5 available October 2020 - 5 available September 2020 - 8 available August 2020 - 5 available July 2020 - 13 available June 2020 - 3 available May 2020 - 7 available April 2020 - 5 available March 2020 - 10 available February 2020 - 10 available January 2020 - 6 available December 2019 - 6 available November 2019 - 7 available October 2019 - 5 available September 2019 - 6 available August 2019 - 9 available July 2019 - 6 available June 2019 - 4 available May 2019 - 4 available April 2019 - 4 available March 2019 - 9 available February 2019 - 4 available January 2019 - 6 available December 2018 - 3 available November 2018 - 5 available October 2018 - 7 available September 2018 - 9 available August 2018 - 3 available July 2018 - 4 available June 2018 - 5 available May 2018 - 6 available April 2018 - 4 available March 2018 - 6 available February 2018 - 6 available January 2018 - 2 available December 2017 - 5 available November 2017 - 8 available October 2017 - 5 available September 2017 - 4 available August 2017 - 3 available July 2017 - 5 available June 2017 - 2 available May 2017 - 5 available April 2017 - 4 available March 2017 - 6 available February 2017 - 3 available January 2017 - 4 available December 2016 - 3 available November 2016 - 4 available October 2016 - 3 available September 2016 - 2 available August 2016 - 6 available July 2016 - 4 available June 2016 - 2 available May 2016 - 2 available April 2016 - 2 available March 2016 - 3 available February 2016 - 2 available January 2016 - 5 available December 2015 - 3 available November 2015 - 4 available October 2015 - 3 available September 2015 - 2 available August 2015 - 2 available July 2015 - 5 available June 2015 - 3 available May 2015 - 1 available April 2015 - 2 available March 2015 - 6 available February 2015 - 3 available January 2015 - 3 available December 2014 - 4 available November 2014 - 2 available October 2014 - 5 available September 2014 - 1 available August 2014 - 2 available July 2014 - 2 available June 2014 - 3 available May 2014 - 2 available April 2014 - 5 available March 2014 - 4 available February 2014 - 2 available January 2014 - 5 available December 2013 - 3 available November 2013 - 3 available October 2013 - 4 available September 2013 - 5 available August 2013 - 7 available June 2013 - 1 available April 2013 - 3 available March 2013 - 6 available February 2013 - 5 available January 2013 - 4 available December 2012 - 1 available March 2012 - 3 available January 2012 - 2 available

© 2008 - 2024 UKTaxCalculators.co.uk