The number of HM Revenue and Customs (HMRC) investigations that result in prosecutions has fallen by more than two-thirds in five years, with just 11 wealthy taxpayers prosecuted last year.
The number of concluded prosecution cases fell from 749 in 2018-19 to 240 in 2022-23, a drop of more than 67%, according to the figures obtained by the Bureau of Investigative Journalism and TaxWatch.
The statistics reveal that over the same five-year period the number of wealthy individuals – defined by HMRC as those with at least £2m in assets or with income of £200,000 a year or more – who were prosecuted fell from 20 to 11.
Margaret Hodge, the former chair of the House of Commons public accounts committee and a fierce critic of tax avoidance, said: “The scale of decline here is unacceptable. Where is the appetite from ministers for going after tax dodgers? Who will throw the book at these crooks? At a time when families are having to choose between heating and food, there has to be a real impetus to take the fight to those not paying their fair share.”
It is possible that prosecutions have declined because the number of tax dodgers has declined.
As we might, possibly, expect from tougher enforcement. Folk get frit and cheat less. But asking for logic from that combination of Richard Brooks at TaxWatch and Margaret “I’m the only person under the Liechtenstein rules” Hodge is to ask too much.
And here’s someone who really doesn’t get it:
Phil White, a consultant and member of Patriotic Millionaires UK, a group of millionaires campaigning for higher taxes on the wealthy, said: “Given the billions of pounds estimated to be lost via tax havens in the next decade – many of which are in the UK domain – it is hard to believe that HMRC has only prosecuted 11 wealthy individuals in the last year.
“At a time when families are counting every penny spent for mealtimes and totting up the cost of keeping their lights on, HMRC should be doubling down on those who can most afford to pay their taxes – especially so for those doing all they can to avoid paying them.”
Tax havens can be – and in near all cases actually are – used legally. So the amount of money in a tax haven bears no relationship at all to how many are deliberately flouting tax law.
Todays HMRC has a large number of poorly trained staff who are obviously working from home with no access to data and systems outside their narrowly defined responsibilities and a general “computer says no” attitude.
This is not conducive to any appreciation of deceit other than failures to file or make payments on time.
If some misguided millionaire wants to pay more tax he can do so voluntarily, no need for any kind of campaign. But if you are worried about the plight of poorer people, the last thing that you should do with your money is hand it over to the state. Better to either hand it directly to the people that you want to be helped or spend it on goods and services that people work to provide.
There’s more tax evaders in the average housing estate than in the private jet lounge. The amount of tax evaded in each might be closer, but on headcount the average man would be leading by a country mile. There’s just no need to evade taxes if you’re rich – you can afford accountants to make sure everything is done right and according to the book, utilising all the nooks and crannies of tax law of course. Whereas the average man has any amount of side hustles going on – cash in hand work, an ebay business, a rental property not declared, or maybe rent taken part in cash.
Jim
Or even a cash only“Turkish” barber shop.
I’m sure HMRC looks closely at them – not.
HMRC can’t even answer the phones so it’s open to conjecture whether they can do anything properly.
Phil White, a consultant and member of Patriotic Millionaires UK, a group of millionaires campaigning for higher taxes on the wealthy, said: “Given the billions of pounds estimated to be lost via tax havens in the next decade – many of which are in the UK domain – it is hard to believe that HMRC has only prosecuted 11 wealthy individuals in the last year.
I am in favour of prosecuting, and then executing, Phil White.
Don’t we need to check with those real experts at tax avoidance, use of tax havens and generally avoiding tax at the Graun?
After all, a lot of practical experience beats a bit of book learning…
Its also ‘led to prosecutions’ . Most challenged will settle well ahead of any prosecutions which is cheaper and faster for HMRC.
https://patrioticmillionaires.uk/
Probably an oversight but it doesn’t say anywhere how much the membership has voluntarily contributed above and beyond that required by statute. Equally surprisingly there is no mission statement that members will under no circumstances take advantage of any avoidance schemes.
It sounds a bit like an excuse for the well-heeled to get together for some sanctimonious lobbying. I wonder if Marcus “3 Rolls Royces” Rashford is a member?
Greed: the belief you have a Right to take someone else’s money to use for your own purposes.
Tax is greed-fuelled theft, often supported by envy and spite.
And no we don’t need Government to empty the dustbins we are quite capable of paying someone directly to empty them.
A tax inspector pal explained that most investigations were due to people being grassed up, often by disgruntled customers or partners. They usually fess up and cut a deal with the Revenue. BUT this involves a lot of legwork and surveillance, primarily because the earnings are in cash and not traceable and is very resource hungry.
Those who are rich by accumulation rather than salary have decent accountants who can use legal tax avoidance.
Didn’t they change the rules such that you now have to pay up front, negotiate later? “Accelerated Payments” is the term. I imagine that pushes people towards settling rather than arguing.
There are a lot of people coming over on boats and working cash in hand as rocket scientists, where’s the investigation in to that?
@ JohnB
We *do* need local government to have the dustbins emptied as this prevents/reduces the spread of disease and rats since a large minority would not voluntarily pay someone to clear up the rubbish.
Capability and willingness are not the same thing.
@ john77
Might be true if the local government actually managed to get dustbins emptied on a regular basis. Around here, with a collection every two weeks, there are bin bags spilling their contents into the streets. There are a fair number of people who pay private contractors to take refuse because of the shite service provided. This is on top of the service provided by the council.
Take https://www.clearabee.co.uk/private-bin-collection where a bit collection is £35 – I pay £450 per month in council tax and should reasonably expect more than £70 of refuse collection per month. Problem is a large part of that £450 will be spunked on pensions for the lazy bastards who infest the councils.
Stan
“and should reasonably expect more than £70 of refuse collection per month”
If clearabee had a regular contract to do your whole street/area, they’d charge you way less than £70 per month!
£450 a month ?
Bloody hell Stan that’s three times what I pay. Where are you living, moreover what are you living in ? Kensington Palace ?