Further investment of £312m in key HMRC personnel would deliver additional revenues of more than £8bn, according to the union representing senior managers and professionals in HMRC.
In its Budget submission the Association of Revenue and Customs (ARC) said it ‘feels strongly’ that the government should reconsider the scale of proposed reductions in HMRC staffing.
ARC president Gareth Hills said: ‘Recouping lost taxes – from companies to individuals, from VAT to corporation tax – makes sense at a time of public outrage over tax avoidance, especially by large multinationals. To do so would also help address the current £100bn deficit providing an alternative to public sector spending cuts or tax increases. By investing in key personnel in HMRC, the government will be guaranteed a significant return. Now is the time for it to act, the time for it to be bold, and the time for it to back a cast-iron winner.’
Accountants and business advisers PKF said next week’s Budget could include ‘further investment in HMRC staff to enable the organisation to make more effective use of the impressive arsenal of abuse-busting weapons already at its disposal’.
Lisa Macpherson, national director of tax at PKF, said: ‘The new general anti-abuse rule, which comes into force in July, further extends HMRC’s powers in this important area. However, a lack of legislative backing is not the issue here. HMRC already has an impressive arsenal of abuse-busting weapons at its disposal – including stringent fines and penalties, confiscation orders and dawn raids – but it still doesn’t have enough suitably qualified staff to use them to full effect.
‘Admittedly, there have been a number of announcements recently about additional recruitment at HMRC, but if there is just one spending announcement in the Budget then the beneficiary should be the tax man. Supporting the government department that brings in the most money is almost certain to prove a wise investment in the current economic and political environment.’
She added: ‘With a capable and motivated workforce in place, HMRC can then consider a more expansive strategy, such as a general tax amnesty followed by an all-out assault on tax evaders using its full range of powers on anyone who has failed to come clean.’
ARC also urged the government to ‘urgently address the significant pay disparity’ with the private sector, where tax experts can ‘earn up to 64% more’, to ensure that HMRC retains the skills necessary to reduce the tax gap and tackle complex avoidance schemes.
Further investment of £312m in key HMRC personnel would deliver additional revenues of more than £8bn, according to the union representing senior managers and professionals in HMRC.
In its Budget submission the Association of Revenue and Customs (ARC) said it ‘feels strongly’ that the government should reconsider the scale of proposed reductions in HMRC staffing.
ARC president Gareth Hills said: ‘Recouping lost taxes – from companies to individuals, from VAT to corporation tax – makes sense at a time of public outrage over tax avoidance, especially by large multinationals. To do so would also help address the current £100bn deficit providing an alternative to public sector spending cuts or tax increases. By investing in key personnel in HMRC, the government will be guaranteed a significant return. Now is the time for it to act, the time for it to be bold, and the time for it to back a cast-iron winner.’
Accountants and business advisers PKF said next week’s Budget could include ‘further investment in HMRC staff to enable the organisation to make more effective use of the impressive arsenal of abuse-busting weapons already at its disposal’.
Lisa Macpherson, national director of tax at PKF, said: ‘The new general anti-abuse rule, which comes into force in July, further extends HMRC’s powers in this important area. However, a lack of legislative backing is not the issue here. HMRC already has an impressive arsenal of abuse-busting weapons at its disposal – including stringent fines and penalties, confiscation orders and dawn raids – but it still doesn’t have enough suitably qualified staff to use them to full effect.
‘Admittedly, there have been a number of announcements recently about additional recruitment at HMRC, but if there is just one spending announcement in the Budget then the beneficiary should be the tax man. Supporting the government department that brings in the most money is almost certain to prove a wise investment in the current economic and political environment.’
She added: ‘With a capable and motivated workforce in place, HMRC can then consider a more expansive strategy, such as a general tax amnesty followed by an all-out assault on tax evaders using its full range of powers on anyone who has failed to come clean.’
ARC also urged the government to ‘urgently address the significant pay disparity’ with the private sector, where tax experts can ‘earn up to 64% more’, to ensure that HMRC retains the skills necessary to reduce the tax gap and tackle complex avoidance schemes.
