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HMRC has increased its investigations work after the temporary reallocation of its resources during the pandemic, according to its quarterly performance report for 2020-21.
Accountancy firm UHY Hacker Young states that, in the first quarter of 2021, HMRC opened 102,000 compliance investigations, up 36% from 75,000 in the previous quarter and almost quadruple the low of just 27,000 in the second quarter of 2020.
The extra revenue collected by HMRC from its compliance activity jumped 29% to £14.2bn in those early three months, an increase from £11bn in the same period in 2020.
Partner Graham Boar said: ‘Taxpayers with skeletons in the closet should be aware that they are at risk of investigations, fines and even prison sentences. It would be favourable for individuals with unpaid tax to approach HMRC first before they come knocking.’
