HMRC to target South East tax cheats, warns accountants James Cowper Kreston

HRMC has launched two major campaign targeting tax cheats in the South East in an attempt to recover over £6.5m of unpaid tax.

The first campaign will target specifically individuals that HMRC believes deliberately hide their wealth or who are living beyond their obvious means.

The second will target road haulage companies that it believes are not declaring all of their income and who are selling or misusing illegal and untaxed fuel.  The campaign will also be examining the VAT records of those and other companies in the South East.

Stephen Barratt, Private Client Tax Director at James Cowper Kreston said: “This first campaign is designed to give private individuals the opportunity to come forward and disclose any unpaid or under paid tax.  This is a window of opportunity to get tax affairs in order".

“HMRC is using increasingly sophisticated software to identify those who are not paying sufficient tax and the chances of going undetected are therefore diminishing.  It is also able to draw upon the vast array of freely available sources, such as the Land Registry, Google Earth, social media and property websites that can give indications as to an individual’s wealth".

“Our private lives are increasingly lived out in public and this campaign offers businesses and private individuals the opportunity to come forward voluntarily and pay any unpaid tax, interest and penalties at a preferential rate and before HMRC comes knocking.”

Ruth Corkin, VAT Senior Manager at James Cowper Kreston, adds: “Unusually, HMRC is not only focusing on private individuals.  It is at the same time turning its attentions on road haulage companies and examining the VAT records of many other businesses in the South East.  These campaigns should not be ignored.”

James Cowper Kreston offers this advice to those businesses and people who believe that they may have an outstanding tax liability:

• Do not approach HMRC directly without first speaking with an accountant or tax adviser.  HMRC is an increasingly tough negotiator and without detailed knowledge of the tax system larger tax bills and penalties than necessary might be charged.
• Do not ignore this clampdown.  It is possible that HMRC is already aware of your financial details.  If HMRC make the first move because no voluntary disclosure has been made, penalties can be expected to be more severe.

Ruth Corkin, Head of VAT services, James Cowper Kreston LLP, +44 (0)1865 861166 or email