Persistent tax defaulters are being targeted by Her Majesty’s Revenue & Customs (HMRC) and may face criminal sanctions if they fail to mend their ways, warns DSH Chartered Accountants & Business Advisors.
Under the Managing Serious Defaulters initiative, HMRC will closely monitor the tax affairs of individuals who have deliberately evaded tax in the preceding five years.
Those likely to find themselves subject to increased scrutiny include: anyone who has received a civil evasion penalty for dishonestly evading VAT; those who are required to give a security deposit for VAT, environmental taxes, PAYE or NICs; and those with a history of deliberately becoming insolvent as a way of dodging their business taxation obligations.
HMRC has made it clear that people who continue to default on their tax payments will find they are subject to criminal sanctions.
Martin Dane, Head of VAT and Indirect Taxes at DSH, said: “HMRC is to be applauded for taking the long-term approach to combating dishonest tax evasion and aiming to bring those with a poor record of default into line.
“Equally, I hope that HMRC recognises that economic conditions are such that many taxpayers may find themselves unable to meet their tax obligations and that they will receive a sympathetic hearing.”
With HMRC intensifying their efforts to reduce tax fraud, and the increasingly severe penalties, taxpayers need to be more diligent than ever in keeping their affairs in order. DSH is able to help businesses and individuals ensure their tax affairs are well organised and managed, and less likely to attract HMRC’s attention.
To find out more about DSH Chartered Accountants & Business Advisors, visit www.dsh.co.uk or call 01622 690666.