HMRC recovering £0 in nearly half of all tax investigations
14 March 2022
During the 2020-21 financial year, 47% of investigations by the Treasury resulted in no money being retrieved, rising from 31% the previous year.
HMRC investigations resulting in no additional tax can cause taxpayers a large amount of unnecessary stress, in addition to the time and money spent by those under investigation to fully cooperate with HMRC. Questions are therefore being asked as to whether the Treasury is targeting the right taxpayers for investigations.
In 2010, HMRC invested around £100m in The Connect system – software which tracks patterns in customer data across its services, in a bid to combat non-compliance. However, the increasingly low success rate of investigations suggests the system may be falling short in excluding the lowest risk taxpayers.
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Should you have any queries raised in the above, or for advice connected to HMRC investigations, please contact our tax team on 01788 539000 or 0116 261 0061 or email [email protected].
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