News roundup - July 3rd to July 27th

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June 25th 2022
Tax Week 12
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News roundup - July 3rd to July 27th

Top excuses for late renewal of tax credits revealed, upfront payments for tax avoidance schemes detailed and HMRC high net worth unit brings in huge haul.

By Ray Arman

Top excuses for late renewal of annual tax credits

HMRC reveals the top 10 reasons used by people missing the 31st July tax credit renewal deadline.

650,000 people failed to get their renewal forms into HMRC on time last year, but it is hoped the number will be smaller this year with the addition of an online facility to renew.

The top 10 excuses were:

  1. Gold Digging Backfires

    An actual excuse from someone who had met a "rich bloke" so didn’t need tax credits anymore - unfortunately the relationship didn’t last.

  2. Maternal duty

    A claim was not renewed on time as "mum usually does it".

  3. Incredibly bad luck

    The renewal form ended up in the boot of this claimant’s car, but then the car caught fire.

  4. Baby’s fault

    An aspiring Picasso drawn on the canvas of a renewal form, by a baby.

  5. Pedigree Chum

    An alternative to dog food became a renewal form for this unlucky claimant.

  6. Confusion

    I thought the deadline was the 31st January? (It’s not, that's the online Self Assessment Tax Return deadline).

  7. Summer Holiday

    This claim was not renewed as the claimant was on holiday during the last two weeks of July.

  8. Hospital

    This claimant was in hospital but stated they feel much better now.

  9. Employers’ Fault

    Could not get income details from employer?

  10. Déjà vu

    This claim was not renewed as the claimant thought it had already been renewed.

Details of tax avoidance schemes required to make upfront payments disclosed

The finance bill was given Royal Assent on 17th July and with it HMRC received a new power to take upfront payments from the users of avoidance schemes. Known as ‘accelerated payments’, anyone registered to a scheme on the list is being advised to prepare to receive an accelerated payment notice.

The scheme was drawn up to combat an issue where, by signing up to an avoidance scheme, taxpayers could avoid paying tax until the particular scheme was challenged by HMRC.

HMRC brings in £1 billion as a result of it’s High Net Worth Unit

Since 2009 the HNW unit has been honed in on the taxation of over 6,000 taxpayers - those with a net worth of over £20 million each.

A relationship manager specially tasked with understanding the tax affairs of these individuals allows the maximising of voluntary compliance without the need for punitive actions.

The unit brought in £1 billion - the target was for a haul of £894 million.

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