A significant number of individuals, including property developers, consultants, and private landlords earning rental income, have been publicly identified by HM Revenue and Customs (HMRC) on its latest list of deliberate tax defaulters.
The HMRC list names individuals and businesses that have received financial penalties for intentionally defaulting on their tax responsibilities. To be included on the list, the tax owed must exceed £25,000.
Several cases highlighted involve those within the property sector. One individual, for instance, reportedly owes more than £600,000 in unpaid taxes, in addition to facing a penalty of over £300,000.
Another example includes a lettings agency that has been found to owe tax debts totalling over £90,000, along with a further £50,000 penalty issued by HMRC.
The list also features property developers, one of whom has a substantial outstanding tax bill exceeding £9 million. On top of this, the developer faces an additional fine of more than £5 million.
HMRC’s most recent update comprises cases from a variety of sectors, not limited to property and construction. The list also covers businesses and individuals from the hospitality and healthcare industries.
Each case shared by HMRC involves parties who failed to fully disclose their tax defaults at the beginning of the investigation. This non-disclosure played a part in the severity of the financial penalties issued.
The publication of these names serves as a warning and deterrent. Once listed, a defaulter’s details will remain publicly available for a duration of 12 months.
It’s important to note that this particular list only covers civil penalties. It does not include any criminal convictions related to tax fraud or evasion.
HMRC stresses that the vast majority of individuals and businesses in the UK comply with their tax obligations and pay what they owe on time.
However, for those who deliberately attempt to avoid paying their fair share, HMRC has a broad set of enforcement tools at its disposal.
Kevin Hubbard, HMRC’s director of individuals and small business compliance, stated: “The overwhelming majority pay the tax they owe, but for those who refuse, we use a range of tools to take firm action.”
By publishing this information, HMRC aims to uphold fairness in the tax system and ensure that those attempting to dodge their responsibilities are held accountable.
These measures form part of HMRC’s ongoing efforts to clamp down on tax evasion and ensure full transparency across all sectors of the UK economy.
One of HMRC’s strategies to promote tax compliance includes publicly naming individuals and businesses who have been penalised for deliberate tax defaults. The aim is to influence taxpayer behaviour by demonstrating that there are real consequences for failing to meet tax obligations.
By releasing this information, HMRC hopes to encourage those who are in default to come forward and engage with them in resolving their tax affairs. The measure serves not only as a deterrent but also as a prompt for others to take their responsibilities seriously.
However, it is important to note that the information HMRC is legally permitted to share about each deliberate default is limited. The published details are confined to what is listed in their official register of deliberate tax defaulters.
For anyone interested, the full list of those penalised for deliberate tax evasion can be accessed directly on HMRC’s website.