Call for evidence: tackling the tax gap
We are regularly contacted by members of the public via our websites with questions about their tax affairs. These contacts reflect how most unrepresented taxpayers try hard to get their tax affairs right, but sometimes fail because of confusion (so they inadvertently get things wrong) or lack of financial knowledge (such that they are drawn into tax avoidance schemes such as those targeted by the disguised remuneration loan charge). Both of these problems – compounded by sometimes inadequate or misleading guidance from HMRC – contribute to the tax gap.
HMRC also have the ability to correct mistakes to help close the tax gap, for example through using information they already hold about taxpayers, but this is not always put to best use.
Our evidence to the Public Accounts Committee gives examples of each of these three areas of concern.
Read the full response here.