Umbrella contractors might like to know that Danny Alexander, the chief secretary to the Treasury, has said HMRC is to strengthen the size of its team tackling tax avoidance and evasion by adding more than 2,000 additional tax inspectors this autumn.
Alexander told delegates at the Liberal Democrats’ autumn conference that HMRC will move 2,250 staff into new anti-avoidance and evasion jobs, and in excess of 1,000 of these jobs will be advertised this month.
The Lib Dems will also be pushing the government to raise the threshold on income tax from £10,000 to £12,500.
Some people think we should focus our priorities on cutting taxes for the UK’s richest but this beggars belief, continued Alexander. We’re all in this together and the greatest burden has to be paid by those with the broadest shoulders.
A key part of the coalition’s deficit reduction plan is to tax wealthy individuals fairly and if there’s a better way to raise money from them, Alexander said he will consider it. But, in the meantime we must focus on people who are struggling and at the same time make sure everybody pays the tax they owe.
One tax avoidance loophole will very soon be closed, the Treasury says. The next Finance Bill will include legislation to spell out the way Manufactured Overseas Dividends will be treated for corporation tax to make sure they are not used to get repayment or offset income tax that does not go into the UK Exchequer.
The exchequer secretary to the Treasury, David Gauke, said HMRC has already published the draft legislation that will take immediate effect. It is thought this could protect up to £40 million a year of Treasury revenue.
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Image: Hunting Cat / JachtPoes by Meneer Zjeroen
