HMRC believes that as much as £10.1bn in VAT was underpaid by large businesses in 2023/24 a 20% increase of £1.99bn from £8.1bn in the previous year law firm Pinsent Masons observes. HMRC attributes 74% of that amount (around £7.5bn) to ‘legal interpretation and boundary-pushing’.
Pinsent Masons therefore expects HMRC to have a renewed focus on underpaid VAT as part of the Government’s plans to raise an additional £5bn annually by opening more tax investigations.
Bryn Reynolds Partner at Pinsent Masons says: ‘These figures suggest that HMRC believes there is a lot more VAT to be collected from large businesses. With a really challenging target being set for extra income from tax investigations it’s difficult to see how HMRC could avoid upping its focus on VAT.’
Reynolds notes that although HMRC believe that a large majority of underpaid VAT is due to companies pursuing flawed interpretation of VAT...
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HMRC believes that as much as £10.1bn in VAT was underpaid by large businesses in 2023/24 a 20% increase of £1.99bn from £8.1bn in the previous year law firm Pinsent Masons observes. HMRC attributes 74% of that amount (around £7.5bn) to ‘legal interpretation and boundary-pushing’.
Pinsent Masons therefore expects HMRC to have a renewed focus on underpaid VAT as part of the Government’s plans to raise an additional £5bn annually by opening more tax investigations.
Bryn Reynolds Partner at Pinsent Masons says: ‘These figures suggest that HMRC believes there is a lot more VAT to be collected from large businesses. With a really challenging target being set for extra income from tax investigations it’s difficult to see how HMRC could avoid upping its focus on VAT.’
Reynolds notes that although HMRC believe that a large majority of underpaid VAT is due to companies pursuing flawed interpretation of VAT...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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