Those in self-assessment need to ensure that their tax affairs are in order after new figures showed that HM Revenue and Customs (HMRC) clawed back an extra £609 million in 2012/13 as a result of investigations into personal tax returns.
This represents a significant increase of 38 per cent on the previous tax year’s figure, suggesting that HMRC’s toughened stance on tax compliance is delivering results.
Over the past year, HMRC has been focusing on specific sectors where it believes people may not be meeting their tax obligations. This approach has included a number of campaigns designed to encourage people to come forward with any undisclosed tax liabilities in exchange for reduced penalties.
These figures have highlighted the importance of ensuring that your tax affairs are in order. Even a simple error can affect your tax return profile and prompt HMRC to launch an investigation into your tax affairs. If correction is needed, it is better to approach HMRC before they approach you.
If you need any help in this area or you would like to know more about taking out insurance to cover the professional costs of a tax investigation then please contact us.