Tax Authority’s Focus on Individuals and Small Businesses Pays Off

  • HMRC’s investigations into individuals and small businesses yielded £16 for every £1 spent on staff in 2018-19
  • Pinsent Masons research highlights HMRC’s high return on investment in staff targeting this taxpayer group
  • HMRC collected £4.9bn in extra tax from investigations into individuals and small businesses last year
  • Focus on individual self-assessment tax returns increased likelihood of finding mistakes
  • HMRC now receives data from over 100 tax authorities worldwide through the Common Reporting Standard

According to international law firm Pinsent Masons, HMRC’s investment in staff targeting individuals and small businesses produced a significant return last year. The organization collected £4.9bn in extra tax from investigations into this group while spending only £309m on staff. This success is expected to lead to more attention and investigations for taxpayers, who are often less equipped with advisors to challenge HMRC’s findings. HMRC’s data-driven approach, bolstered by international partnerships and civil powers, has proven effective in boosting returns.

Factuality Level: 8
Factuality Justification: The article provides accurate information about HMRC’s returns on investment in staff for investigations into individuals and small businesses, citing specific figures and explaining the reasons behind their effectiveness. It also discusses the sources of data used by HMRC and its focus on individual self-assessment tax returns. The article is well-researched and objective, with no clear signs of sensationalism or personal opinion.
Noise Level: 3
Noise Justification: The article provides relevant information about HMRC’s returns on investment in staff for investigations into individuals and small businesses. It also discusses the effectiveness of their data-led approach and how it identifies mistakes. However, it lacks a deeper analysis or exploration of the consequences for taxpayers and does not offer much actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: HMRC’s investigations into individuals and small businesses impact the overall tax revenue collected, which can affect financial markets indirectly through changes in government spending and policy.
Financial Rating Justification: The article discusses HMRC’s successful investigations into individuals and small businesses, leading to increased tax collection. This impacts the government’s finances and potentially affects financial markets by influencing future policies and spending.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk