0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Chancellor Aiming to Raise £12 Billion Via Tax Avoidance Clampdown

Written by: Keith Tully

Published: 16th March 2016


Chancellor George Osborne has said his government is aiming to have raised as much as £12 billion by the end of the current parliament by clamping down on tax avoidance.

Mr Osborne has repeatedly made commitments to reduce tax avoidance and has already introduced measures to that end such as the use of Accelerated Payment Notices (APNs), which demand early payment of disputed tax amounts.

Among the key targets of the chancellor’s latest efforts to deter and prevent tax avoidance are “personal service companies”, which are apparently being seen as vehicles through which individuals can provide services and generate profits while paying relatively little tax.

Another area of focus for the Treasury is disguised remuneration, a term used to describe certain forms of payment transference by employers to individuals in ways that aren’t always taxed as they should be from the government’s perspective.

“Public sector business will also gain a new duty to make sure that those working for them pay the correct tax,” the chancellor said during his first full Budget speech of the new parliament.

Osborne also announced plans to limit the extent to which companies making annual profits worth in excess of £5 million can offset historic losses and borrow money in the UK to fund activities elsewhere in the world.

The chancellor framed these measures as being part of a “roadmap to make Britain’s tax system fit for the future”.

“This will level the playing field tilted against our small firms,” he said.

In February of this year, HM Revenue & Customs announced that it had already collected more than £2 billion in disputed tax amounts via the use of APNs which were introduced in 2014.

These gains for the Treasury were presented as being a major win for taxpayers and part of an ongoing drive to reduce the scale of tax avoidance throughout the UK.

“We will not tolerate tax avoidance and Accelerated Payments has been a real game changer,” said David Guake, financial secretary to the Treasury.

“HMRC already wins the vast majority of cases that go to court and now HMRC has taken more than £2 billion from tax-avoiders who would have otherwise benefitted from that cash while they were being investigated.”

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners