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Thousands of wealthy taxpayers are to be given their own dedicated section within HMRC.
The Revenue says that the soon-to-launched High Net-Worth Unit is part of an effort to ‘ensure an integrated and consistent approach’ to the tax affairs of the rich.
The unit – hailed by the taxman as completely new approach – will aim to develop ‘a better understanding’ of people within the targeted taxpayers, and it will to strive form better relationships with top-earners’ agents.
The unit is expected to serve in the region of 5,000 of HMRC’s ‘most wealthy and complex customers’: about 0.2% of all British taxpayers.
It will maintain ‘close links’ with other specialist units across the Revenue to secure their input when appropriate, while making use staff currently working in the department’s Complex Personal Returns teams.
News of the dedicated section – which the Revenue says will not be a compliance-driven initiative – was greeted with uncertainty from tax experts.
Peter Vaines, a partner with Squire, Sanders & Dempsey, agreed that high-earners ‘are complex’ and should be dealt with HMRC employees who understand the affairs of wealthy taxpayers.
He added, however, that ‘the Revenue has its work cut out to make [the new unit] credible. It could be easily misinterpreted as aiming to strong-arm the rich for more money'.
Mr Vaines also highlighted the fact that top earners employ ‘armies of tax advisers, to ensure that their tax affairs are spot-on. If you’re rich, you don’t want the taxman crawling all over you’.
The technical director of the Low Incomes Tax Reform Group, Robin Williamson, said that it would be ‘very nice’ if the Revenue were to open a unit dedicated to the affairs of low-income taxpayers, who are ‘potentially the most compliant’.
Mr Williamson went on to point out that low-earners are usually unrepresented in their tax affairs and therefore rely on the taxman for all advice and information.
‘But they seem to be left behind by these [restructuring] initiatives,’ he said.
