In its quest to find tax avoiders and dodgers, the HMRC is stepping up its efforts to track them down which means the amount paid to informers has risen dramatically.
While it’s only right that businesses are allowed to find legitimate ways to reduce their tax burden, those companies who bend the rules could face the risk of having someone inform on their activities.
Several high profile schemes aimed at avoiding tax have been exposed recently and while it is unclear who if anyone had blown the whistle, it does highlight the danger to individuals and their businesses.
The amount paid by HMRC to informers increased by 50% on last year’s figure to £605,000. While the HMRC don’t publicise the rewards they can potentially hand out to informers, it is clear that in some cases they are more than happy to offer an incentive.
The best way to avoid getting caught out either by HMRC or an informer is to seek the help of a good accountancy firm, who can help you work within current tax laws and help you to reduce your tax burden at the same time. There are several ways this can be achieved and people are often surprised by just how much money they can save just by doing things the legal way.
If you are concerned about your tax affairs, give us a call today.