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Big businesses thought to have underpaid £35.8bn in past year

09 December 2021
Categories: News

The amount of tax that HMRC suspects big businesses have underpaid has risen to £35.8bn up from £34.8bn a year ago says Pinsent Masons.

The figure includes £8.1bn in tax believed to have been avoided through transfer pricing. Another £1.2bn is thought by HMRC to have been underpaid by large businesses due to base erosion.

A major contributor to the rise is suspected underpaid employment taxes which have risen 49% to £1.3bn in the past year from £900m the year before. HMRC is concerned that businesses are underpaying National Insurance by classifying employees as self-employed contractors.

Steven Porter partner at Pinsent Masons said: ‘Multinationals underpaying tax is one of the biggest areas of concern for HMRC. The biggest businesses can expect to see HMRC continue to toughen its stance on it.

‘The large business directorate is particularly effective at bringing in the underpaid...

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