Taxpayer vs HMRC – number of disputes soar

The number of disputes between HM Revenue & Customs (HMRC) and taxpayers has risen by 43 per cent over the past two years.

In 2017/18, there were 7,377 first-tier tribunal cases, up from 6,559 in 2016/17 and 5,161 in 2015/16.

The increase is largely due to HMRC’s improved systems, such has the data analysis software, ‘Connect’, which it uses to analyse vast amounts of personal and commercial information on tax payers, with a view to making connections between individual taxpayers and businesses, income, assets and transactions.

Another contributing factor to the rise is the pressure put on the Revenue to reduce the £11 billion which it estimates is lost annually to tax evasion.

The numbers do however show that, what is also clear, is that taxpayers are prepared to contest tax demands in the courts if they think HMRC is treating them unfairly.

If you are concerned about a tax enquiry into your affairs, worried that you may have possibly under declared or, worse still, you are already under enquiry, our Beavis Morgan tax specialists, some of whom are former HMRC Inspector of Taxes, are well versed in dealing with all types of tax issues.

We are also readily available to oversee HMRC disputes on your behalf, as well as to represent clients in appeal proceedings before the Tax Tribunal. In some situations, we can also offer professional fee protection insurance, so the costs are covered in whole or in part.

For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner.