Revenue Powers – What Do You Need To Be Aware Of?

Recent years have seen the closing of over 13 tax offices nationwide and significant staff reductions. There is a massive re-structure in progress with HMRC as they redeploy remaining resources.

The Revenue’s key objectives since 2015 are:

  • Maximise revenues due and to “bear down” on avoidance and evasion
  • Transform tax and payments of their customers (being Making Tax Digital)
  • Design and deliver a professional, efficient and engaged organisation

So, what does this mean in practice for taxpayers – here are some examples:

  1. Digital tax accounts where you can see your complete financial and tax picture for you and your business and can also be reviewed by the agent
  2. HMRC will continue to work with the HM Treasury & Department of Work & Pensions to assist with Universal Tax Credit
  3. HMRC will continue to implement tax free childcare and administer the withdrawal of child benefit for higher rate taxpayers
  4. Looking at country to country communications and tax reporting
  5. Utilise the data received from third parties such as employers, banks, investment providers much more efficiently
  6. Stop non-compliance before it happens – expanding Making Tax Digital across the UK tax system

What is the Managing Deliberate Defaulters Programme?

This program has been introduced to deter known defaulters from returning to non-compliance, create a permanent change in their behaviour and assure that compliant taxpayers are aware of this action, as far as defaulters are concerned.

One point to note which may affect any taxpayer who has suffered a tax enquiry is that HMRC behaviour with deliberate defaulters may transfer across to other areas. It appears for instance that HMRC will keep an eye on the taxpayer for at least 2-3 years after a behaviour which they deem to be inappropriate.

Finally, HMRC do have “a name and shame” policy which enables them to publish information about any person, where after an enquiry the potential loss revenue exceeds £25,000.

So to conclude – lots to think about here and my next blog will talk about HMRC penalties.

If you would like our help to understand the implications in more detail for your specific situation, call us today on 02394 003600 or contact me on

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This is Vicky, signing out for now and remember – behind every good person and business is a GREAT Accountant!

Posted in Tax & Accountancy.

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