Small Businesses

HMRC saves £540m from Small Businesses

Small BusinessesNew analytics software brought in by HMRC has secured £540m from Small Businesses who have evaded tax in the last two years.

The software makes it impossible for small businesses who try to avoid paying tax to cheat the system. It also also taken back £248m from tax evasion in the past year. Since its implementation however, the software has managed to allow HMRC to take back a giant £540m overall. The main targets for the system are restaurant owners and London cabbies so far, along with Adult entertainment businesses and estate agents. It also targets businesses in over 50 different industries.

The new software implemented by HMRC evaluates over 1 billion items of data to catch out tax evaders in the sole trading and small business sector. In the last five years HMRC have focused on areas throughout the UK, and it’s work in helping crack down on Small Business owners has meant a rise in salaries for the task force. On average, salaries have increased by 10% since 2010.

A representative for HMRC has stated that the new cutting edge system has helped with their investigations throughout the UK. They have also stated that the system looks into accounts, holdings, land registry data, and other accounts from over 5 millions companies across the UK.

Jennie Granger, the director of enforcement for the HMRC, has stated that no one can cheat their new system. And has urged those who know that they’re in the wrong to come forward. They are especially cracking down on businesses in the Adult Entertainment industry, as well as estate agents and tobacco sellers.

This is great news for the HMRC, as they have been under fire recently for lots of different reasons. The release of the Panama Papers has had a detrimental effect on how the public views the tax authority. This is because since the release, the papers have shown exactly how little the tax office focuses on the wealthy. As well as this, they have come under fire for bad calculations on overdue tax from businesses and individuals. It didn’t stop there either, with the closure of offices throughout the country and the moving of jobs – responses from the authority to cases has been sparse. Some customers had been left on hold for hours before giving up.

However, with this system comes new hope for the tax authority. If they can instill hope back in the public, the need for such systems may become less, as the public may fear the authority more and more.