Rags, Jags and Market Traders – you’re next!

Robyn Hughes

HMRC announce that the rag trade, the motor trade and  market traders will be the next targets under its continued plans to catch tax dodgers.

HMRC plans 30 new taskforces as part of its 2012/13 plans to tackle tax evasion. Typically these taskforces look at specific areas and business sectors where HMRC have evidence of tax avoidance. These taskforces have had huge success so far so HMRC are very keen to keep rolling out the tax avoidance programmes adding more sectors and widening the geographic areas they intend to cover

Full details of the areas and sector s can be found on the HMRC website here.

The site also includes a list of the 12 taskforces launched in 2011 and their yields so far. Sectors targeted include restaurants and fast food, scrap metal, and property. HMRC expects to collect over £50m as a result of these and says that, with 13 criminal investigations underway, this figure is likely to rise.

Taskforces originally came about as a result of the Government’s £917m spending review investment to tackle tax evasion, avoidance and fraud which aims to raise an additional £7bn each year by 2014/15.

They hope that these actions will help to reduce the ‘tax gap’ estimated by HMRC at £42billion (2010 figure).

If you are concerned that HMRC may be targeting your sector then please book a free meeting to talk to our tax team for guidance.