Taxman to target buy-to-let landlords, taxi firms and even 'Del Boy' market traders

Published 01st Jun 2012

The taxman is creating three new 'taskforces' to uncover tax evasion among taxi drivers, street market traders and buy-to-let landlords.

It is part of a recent crackdown on 'hotspots' identified across Britain by HM Revenue & Customs (HMRC) - a result of the Government’s £917million spending review.

The aim is raise an additional £7billion each year by 2014/15. It has so far recovered £50m in 2012.

HMRC launched 12 taskforces in 2011/12. Thirty will follow in 2012/13.

The new drive will involve 'intensive bursts of activity' of these team of tax officials in 'specific high-risk trade sectors and locations in the UK'.

They will typically focus on groups of up to around 300 people.

The areas of focus will include A taskforce to tackle tax evasion among buy-to-let landlords will focus on East Anglia, London, Leeds, York, Leicester, Nottingham, Lincoln, Durham and Sunderland and is expected to recover £17million.

David Gauke, the Exchequer Secretary, said: ‘We have made it clear that we will not tolerate tax evasion – everyone needs to pay the taxes they owe in full. We are determined to crack down on the minority who choose to break the rules.

‘It is not fair, that at a time when most hard-working people are paying the right tax, others are trying to get out of paying what they should.

'This is not an empty threat - HMRC can and will track you down if you choose to break the rules.'

It comes just months after the HMRC declared a major crackdown on tax dodgers in a variety of professions.

It announced that 30 taskforces would be created, targeting tax dodgers in a range of industries, including the motor trade, eBay traders, buy-to-let landlords, Avon ladies and plumbers.

But the taxman's aggressive stance against individuals has come in for criticism in light of the apparently more lax stance it has taken with Britain's biggest businesses. HMRC has been accused of letting major companies such as Vodafone off the hook for vast amounts of tax.

It is claimed that the mobile banking giant had struck a ‘sweetheart’ deal with the tax office over a ‘£6billion’ tax bill, paying £1billion instead.

The taskforces are specialist teams that undertake intensive bursts of activity in specific high-risk trade sectors and locations in the UK. The teams visit traders to examine their records and carry out other investigations.

Gary Ashford of the Chartered Institute of Taxation (CIOT), said: 'We have already seen some unannounced visits on restaurants in some parts of the country, including the arrest of some of the restaurant owners themselves and it seems the Midlands is next.

'Anyone who has been evading tax, whether income tax, PAYE or other taxes, in any part of the country should consider coming forward before they are found out.

'Voluntary disclosure usually leads to lower penalties, a reduced chance of prosecution and a reduced risk of being ‘named’ under the publication of details of deliberate defaulters scheme.'

He added that the targeting of property rental income overlapped with other HMRC campaigns, such as the push against hidden offshore earnings. 'Many property investors may well be UK residents holding offshore accounts, or non doms, mistakenly not appreciating that UK source income is still taxable,' he said.

Source: ' ThisIsMoney '

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