HMRC Crackdown On Tax Fraud

On 31 January 2012 HMRC launched a major crackdown on tax fraud.

The so called 'Contractual Disclosure Facility' will involve HMRC writing to people suspected of tax fraud, and offering them the opportunity to voluntarily disclose this fraud within 60 days. In return HMRC will agree not to criminally investigate, and will instead pursue civil penalties. The difference is between the two is significant as a successful criminal prosecution leads to a criminal record, higher fines, and potentially prison.

Although HMRC describe the scheme as targeted at 'serious tax fraud', in our experience any fraud against HMRC is considered serious. Those people with creative expense claims or deductibles therefore need to be aware.