HMRC hit squad targets Midlands rag trade
A TASK force to tackle tax evaders in the rag trade in the Midlands has been launched by HM Revenue & Customs (HMRC).
It is expected to recover over £4.5m and will target manufacturing, wholesale, retail and textile recycling.
David Gauke, the exchequer secretary, said: “The vast majority of people play by the rules. We will not tolerate tax evasion and will crack down on the minority who choose to break the rules.
“It cannot be fair that, while most people are paying the right tax, a tiny minority are not paying what they should.
“HMRC is on target to collect more than £50 million as a result of taskforces launched in 2011-12.”
Explaining how the task force will work, Heather Taylor, of accountancy firm Grant Thornton’s tax investigations team in Birmingham, said: “This project will cover a lot of businesses and will take in the highly regarded garment and textile businesses centred on Birmingham.
“HMRC will send in teams of highly trained investigators to visit businesses and examine their records and tax compliance across all taxes, including income tax, corporation tax, VAT and PAYE. They will also be likely to check out the employment status of workers in those businesses which are targeted.
“Any traders who have not registered with HMRC or who have concerns that they may have understated the profits which they have declared should seek specialist advice and consider making a disclosure to HMRC to reduce the chance of a potential prosecution and to bring down the amount of any penalties which may be due.”
