20 April 2012

Osborne continues to attack the wealthy

A recent Treasury Report does not impress the Chancellor of the Exchequer, Mr Osborne.

The Report has stated that of the 10,000 taxpayers with an income of between £1m and £5m, 3% paid less than 10% of their income in tax in the 2010/2011 financial year.

The Report goes on to say that for those estimated 400 taxpayers with an income of between £5m and £10m, the proportion paying tax of less than 10% of their income increased to 4%.

Finally, of the 200 taxpayers with an income above £10m, 6% are paying less than 10% in tax of their income.

The Report does not reveal how this has been done but no doubt the media will seek to highlight these statistics in their reporting of the same facts.

There are likely to be uncertain times ahead for those taxpayers and their advisers as HMRC are likely to use their enhanced information powers in order to obtain more details on how such a position has arisen.  Anyone found underpaying their share of tax will face a retrospective tax bill, potentially covering more than just the current year together with interest, and a financial penalty.

All taxpayers might be well advised to review their tax affairs before an investigation is undertaken by HMRC.

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