I've just been reading an article in Accountancy Age which I find a little perturbing.
From next week HMRC will be issuing 43,000 notices to taxpayers in dispute reversing the age old idea of innocent until proven guilty.
The scheme is being brought in to tackle those who have used tax avoidance schemes (tax avoidance of course being legal except in the eyes of those receiving less tax revenue)... Just as MLR was all about anti terrorism and nothing at all to do with tax!
The new regime means that tax payers must pay up disputed tax in advance and if HMRC have got it wrong they will return the money with interest.
The new powers affect individuals and businesses equally.
This comes in at the same time as HMRC gaining the power to take money directly from bank accounts.
Draw your own conclusions as to whats going to happen next with that combination.
The top ten accountancy firm Moore Stephens believe that the new powers will result in a wave of insolvencies.
The treasury is expecting to raise £7billion from this move.
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Shaun
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