Taxpayers are not rushing forward to correct electronic sales suppression irregularities
HMRC opened a new disclosure facility to enable taxpayers who have used electronic sales suppression (ESS) tools to avoid tax to come forward and notify an intention to make a disclosure by 5 January 2023. A Freedom of Information request by RSM UK shows the facility was singularly unsuccessful.
Taxpayers facing the cost of HMRC repayment delays
HMRC has recently issued its December 2022 performance statistics which suggest that 76.3% of correspondence was turned around within 15 days. However, delays in dealing with the remaining correspondence can be open ended and last for months, including claims and elections relating to tax refunds. We are seeing large tax repayments delayed for significant amounts of time within HMRC’s system, causing distress for the taxpayers impacted and costing taxpayers as a whole with the increasing interest due on repayments.
How spooked entrepreneurs boosted CGT revenues
Capital gains tax receipts were immune to the fall in receipts other taxes suffered during the pandemic and have risen to record levels in the last few years. A Freedom of Information request obtained by RSM UK highlights the extent to which business owners selling shares in their unlisted companies have boosted these tax receipts.
CGT revenue growth could slow as business owners explore alternative exit routes
As the deals market starts to cool, there has been a spike in interest from business owners wanting to explore alternative exit routes, such as selling shares to management teams or employee ownership trusts. As capital gains tax receipts hit record levels in January 2023, buoyed by tax from the sales of company shares, this new trend could materially impact on the Treasury’s receipts in the future.