HMRC Gains Reinforcements: Tax Dodgers Beware

<p>HMRC, the British customs and tax authority, has been quietly beefing
up its <a href="https://www.financemagnates.com/terms/c/compliance/">compliance</a> battalion in a bid to stem a sharp decline in tax revenue.
The strategy has seen the tax office add over 3,000 new recruits to its
compliance division since the 2021/22 financial year. Before you start
contacting your accountant, the majority of the new staff will be working on issues
involving fraud and Covid schemes. Or perhaps do call the accountant.</p><p>Bolstering the tax arsenal</p><p>A recent report from the Public Accounts Committee laid bare the
concerning trend: tax revenue from <a href="https://www.gov.uk/government/organisations/hm-revenue-customs">HMRC</a>'s
compliance efforts plummeted from an average of 5.2% before the pandemic to a
mere 4.2% in 2021-22. That's the lowest it's been in over a decade, resulting
in a hefty £9 billion less flowing into HMRC's coffers over the past two years.
The blame? In no small part, it falls on the fraudulent exploitation of Covid
relief schemes. That's a lot less interesting than <a href="https://www.financemagnates.com/forex/education-centre/the-use-of-offshore-tax-havens-for-investments-and-tax-avoidance/" target="_blank" rel="follow" data-article-link="true">offshore havens and the like</a>.</p><p>Moreover, the report pointed out that HMRC's compliance staff suffered
from reduced productivity due to the dreaded social distancing restrictions and
the departure of experienced hands. Clearly, the tax office had its work cut
out. Turns out that HMRC staff weren’t too good at the old working from home.</p><blockquote><p lang="en" dir="ltr">