HMRC to monitor tax dodgers for 5 years under new measures

04 April 2013

Under new measures launched in April by HMRC’s Managing Serious Defaulters programme tax dodgers will now be closely monitored for up to 5 years. Evaders targeted consist of those who have received a civil evasion penalty for dishonestly evading VAT; or are required to give a security deposit for VAT, Environmental Taxes, PAYE or NICs; or become deliberately insolvent as a way of dodging their business taxation obligations. Managing Serious Defaulters monitoring activities can include unannounced visits by HMRC, asking for records so they can be checked, carrying out in-depth compliance checks into personal tax affairs, observing and recording business activities and cross-checking details in accounts. HMRC has warned that defaulters who fail to comply with their tax obligations may face criminal proceedings.