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Sharp rise in court cases to contest HMRC tax orders

In 2017, 122 people asked for a judicial review of tax orders compared to 90 in 2016, a rise of 36%. This rise is likely due to HMRC doubling its employment of legal demands to collect unpaid tax bills.

Law firm RPC says that judicial reviews are often a reaction to aggressive HMRC policies. Adam Craggs, an RPC partner, said:

“Increasing aggression and intransigence mean that judicial reviews are becoming far too common and are all too often the result of simple errors by [the Revenue] and a dogged refusal to correct them.”

Statistics show that HMRC wins nine out of ten prosecutions and 78% of cases that are appealed. They say that this has resulted in collecting £37bn in taxes that would have been unpaid without prosecutions.

HMRC defends its policies that some see as aggressive. A spokesperson for the organisation said:

“Every year, through our compliance work, we collect or protect billions of pounds that would have otherwise been lost to the UK through fraud, tax avoidance, evasion and non-compliance.”

To make sure that you pay the correct tax and are not prosecuted by the taxman, be sure to use a good accountant. In the Wirral area, there are many self-employed people, contractors and micro-businesses that do not use accountants and submit their own tax assessments. Unless they are tax experts, they could inadvertently pay less tax and find themselves receiving a large unexpected tax bill at a later date.

Posted by Mark
July 26, 2018
HMRC

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