There has been much anxiety in the press in recent months over proposals to give HMRC powers to collect money owed directly from people’s bank accounts. The major concern is that HMRC are seen to be appointing themselves as judge, jury and executioner with little if any access to an appeals procedure.

No right thinking person should doubt that HMRC need robust powers to stop bad people avoiding paying their fair share of tax, but in my experience the vast majority of people who rely the rights of appeal are not bad people. They are far more likely to be ordinary people like you and me with busy lives doing their best to comply with a very complex tax system. My own statistics show that of the small percentage of cases which have led to a formal HMRC enquiry, the majority have been settled without any penalty meaning that HMRC have accepted they are entirely innocent.  Rarely have I come across a case where penalties have been imposed for behaviour considered to be worse than simply careless.

For further information, visit Taxation magazine who are running a campaign to try to stop these powers being introduced.

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The information in this article was correct at the date it was first published.

However it is of a generic nature and cannot constitute advice. Specific advice should be sought before any action taken.

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Richard Verge - Tax Director

E: rverge@goodmanjones.com

T: +44 (0)20 7874 8856

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Richard is a personal tax expert and is able to advise high net worth individuals on either immediate tax concerns or a long term plan to ensure that their affairs are structured to take advantage of the tax reliefs available.

His experience from working with HMRC ensures that he is more than adept at understanding the view from the other side, to the benefit of his clients. Richard advises entrepreneurs, owners of family businesses and partners in professional practices and provides advice on planning from both a personal and worklife perspective.

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