HMRC are focusing on people who have been in business for years or have perhaps rented property, and not told HMRC. They have launched a new publicity campaign – “HMRC are closing in on undeclared income”. The campaign encourages people to come forward and declare their income for back years in return for lower penalties than would be charged if HMRC find them first. HMRC’s website is not absolutely clear about what the reduced penalties are and how much better off people will be if they come forward. If people do come forward, HMRC’s Inspectors are under pressure to bring in as much money for the Exchequer as possible and may not offer the lowest penalties. It remains to be seen how effective HMRC’s new campaign will be. It is likely that unless HMRC make it clear that there will be a big saving for coming forward, people will probably wait for HMRC to find them. If that happens, how many people are found will obviously depend on the resources that HMRC put into the campaign.
People are fed up with what the banks, big businesses and wealthy individuals get away with. It is going to take a lot to persuade the ordinary businessman or woman to declare their earnings or all their earnings, if they can avoid it. If big businesses and rich individuals could be made to pay their fair share, and the basic income tax that everyone paid could be reduced, more tax would be collected because the ordinary person would rather declare everything and sleep at night. Furthermore people would want to ensure others paid their fair share because if income tax was low, they would be more incensed about people who paid nothing!
Meanwhile, as a minimum should the government offer tax evaders who make a full disclosure no penalties at all if they come forward, and just collect the tax and interest, and give this full publicity on TV, radio and bill boards?
Also perhaps the public register of business names with the names of people running the businesses where different, should be reintroducing so people could have some comfort that the businesses they used were legitimate?
Just a thought.