HM Revenue & Customs (HMRC) has made an extra £1bn in tax from so-called ‘high-net-worth individuals’ (HNWI) with over £20m in assets, following a voluntary compliance exercise.
HMRC launched a ‘high net worth unit’ in 2009 to deal with the tax affairs of such people and, to date it has brought in £1bn by working with HNWI’s to ensure that they voluntarily pay the right taxes. In its first year the unit yielded £85m in extra taxes and in the year 2013-14 it raised £268m.
Financial Secretary to the Treasury, David Gauke, said that the taxman “vigorously polices the rules”, ensuring that it collects the tax that is due, and takes tough action against the minority who seek to avoid their responsibilities.
He added that this approach is clearly working, as the unit has now delivered £1bn in compliance yield against targets totalling £894m. He added that it is further evidence that the Government’s investment of nearly £1bn in HMRC to tackle tax avoidance, evasion and fraud is paying off.
Meanwhile, the taxman has also begun writing to 6,000 wealthy UK residents who hold or held accounts with HSBC in Geneva, Switzerland, inviting them to disclose any tax irregularities.
The letters have been issued by HMRC’s newly established Offshore Co-ordination Unit and will ask the recipients to provide the department with written confirmation either that they have no tax irregularities, will be making a disclosure under the Liechtenstein Disclosure Facility (LDF) or will be making a disclosure but not under the LDF.
Information on the 6,000 individuals, companies, trusts and other bodies that hold or held accounts with HSBC Geneva, was given to HMRC by France under a tax treaty last year.