HM Revenue & Customs (HMRC) has published its Annual Report and Accounts for 2012/13, containing its achievements during the year ended 31 March 2013.
The compliance headlines are:
- £20.7 billion was achieved from compliance activity, which was £2 billion above target and £2.1 billion more than the tax department collected in 2011/12. HMRC has to deliver £23.5 billion from compliance activity by 2014/15.
- £1.5 billion was collected from fines and penalties, a marked increase on the £0.8 billion raised the year before.
- £342 million was received after the UK – Swiss Tax Agreement came into force in January 2013.
Campaign and taskforce activity continues to play a pivotal role in raising money.
More than £600 million has been raised as a result of campaign activity to date, with more than 22,000 investigations started. Campaign targets have included medics, plumbers, electricians, online traders, fitness coaches and direct sellers earning commission. HMRC is committed to running 4 campaigns each year.
£72 million has been raised in additional revenue from taskforce activity so far, but HMRC expects somewhere in the region of £173 million in total, as taskforces continue to be rolled out. Taskforces are different to campaigns, as they target trades and professions in geographical areas. In 2012/13, HMRC launched 28 taskforces and the targets included the legal profession in London, hair and beauty salons in the North East, restaurants in the South East and on the south coast and the motor trade in Scotland. A similar number of taskforces are expected to start in 2013/14.
During the next 12 months HMRC is going to start receiving information from merchant service providers (those who process credit/debit card transactions) and intends to use the information gathered to drive compliance activity from spring 2014 onwards.
5,463 staff have been moved to new or different compliance roles to help deliver the extra revenue as HMRC plots a determined, multi pronged approach to tax compliance.
A full copy of HMRC’s Annual Report and Accounts can be viewed here:
Author: Guy Smith, Senior Tax Consultant on the ReSource Tax and VAT Consultancy Team