Top Rate Taxpayers Being Investigated

Compliance work by HMRC is leading to investigations into the 50p tax rate as well as the tax on bonuses. Law Firm Pinsent Masons, put through a FOI request (Freedom of Information) which revealed £400 million of tax could be underpaid in these categories of income. It is comprised of PAYE and NIC's which have been underpaid due to the structure by which these taxpayers are being remunerated. Last year £280 million was being investigated for the same reasons. Partner as Pinsent Masons, Jason Collins said HMRC are targeting executives and directors at the largest UK companies as they are a lucrative source of extra tax income for the revenue. As HMRC has seen the amount raised by the 50 percent tax rate much lower than expectations, they are increasing aware of discrepancies and tax avoidance possible by people in this position.