Taxing time for investors as HMRC fishing pays off

Its calculations show that HMRC’s ‘Affluent Unit’ has been raking in millions of pounds in underpaid tax from the highest-earning taxpayers.

Mark Giddens, head of private client services for UHY Hacker Young, said HMRC’s yield from compliance work related to personal tax returns was £609m in the 2012-13 tax year, up from £441m in the previous tax year (to the end of March 2012).

He pointed to recent HMRC statistics, which show that the underpayment of taxes from individuals increased by 5 per cent in the past year to £4.6bn, up from £4.4bn in the previous 12 months.

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Mr Giddens said: “HMRC is investing more time and effort in cracking down on tax evasion by buy-to-let landlords, as this form of investment has grown dramatically in the last decade and can involve flows of undeclared rental income.”