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No hiding place
Key points
- Wealthy individuals are handled by HMRC’s wealthy and midsized business compliance directorate.
- HMRC may use its high risk wealthy programme (HRWP) for disputes with significant tax at risk.
- The programme involves a collaborative approach and engagement of senior HMRC team.
- If evasion is suspected HMRC fraud investigation service becomes involved.
- There is an increased risk of prosecution for wealthy individuals.
HMRC’s approach to taxpayer compliance and enforcement in relation to wealthy individuals is best understood in the context of its organisational structure. One key component of this is its ‘customer segmentation’ model which groups taxpayers by reference to their tax footprint.
Wealthy individuals sit predominantly within the department’s wealthy and midsized business compliance directorate (WMBC) which is responsible for general compliance including spotting and correcting mistakes. HMRC’s definition of ‘wealthy’ for these purposes currently includes those 700 000 or so individuals with incomes above £200...
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