HMRC raised an extra £2.6 billon in revenue last year as a result of investigations into corporation tax pertaining to the UK’s largest businesses’.
According to law firm Pincent Masons, the total amount of additional corporation tax collected in 2015/16 was however 25 per cent lower than one year earlier, when HMRC managed to net an extra £3.5bn, possibly indicating a “lower-risk” approach to tax planning amongst large corporates over recent years. Lower corporate tax rates could also explain the decline, which reduces the amount of tax taken by HMRC.
Heather Self, Partner at Pinsent Masons, comments: “We are seeing HMRC taking a more aggressive stance in relation to commercial transactions which were once seen as routine planning. The issues tend to be less clear cut, which can make them more difficult for HMRC to tackle.”
In the fight against tax avoidance by multinationals, Ms Self said the UK government is “leading the way” by implementing proposals made by the Organisation for Economic Co-operation and Development sooner than most countries. She adds that “HMRC and the Treasury are .. likely to be under pressure to show that they are taking a tough line with big corporates.”
Whilst the tax environment remains convoluted and confrontational, our experts at Beavis Morgan understand the demands placed on businesses and we work at understanding you, your business and its unique issues, so as to provide the right advice and solutions to help you improve your net worth and increase growth and profitability.
Our diverse team of tax professionals are committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring your affairs in a tax effective and efficient way.
For more information, please contact your usual Beavis Morgan Partner.