View more on these topics

Spending Review: HMRC told to make 5% cuts but raise more from tax avoidance


HMRC will see its budget cut by a further 5 per cent in 2015/16 but will be given higher targets for collecting money from tax avoidance and evasion.

Speaking in the House of Commons today for the spending review, chancellor George Osborne said HMRC will seee its budget cut from £3.4bn in 2014/15 to £3.3bn in 2015/16.

At the same time it will aim to raise £1bn more than the previous year while cutting back office functions.

The Public Accounts Committee has slammed the lack of resources at HMRC, claiming it is “fighting a battle it cannot win” on tax avoidance.

From 2015/16, the department will aim to raise £24.5bn a year from tax avoidance and evasion, compared to a £23.5bn target for 2014/15.

The Treasury says HMRC raised £20.7bn in tax revenues in 2012/13, £2bn ahead of its target and over £6bn more than in 2010.

The spending review paper states HMRC will focus on frontline tax collection services and cut £130m through improved productivity and further digital transformation, reducing inefficient manual processing and dealing with error.

Osborne said: “Despite the fact that this department will see a 5 per cent reduction in its resource budget, we are committed to extra resources to tackle tax evasion.

“The result is that we expect to raise over £1bn more in tax revenues from those who try and avoid paying their fair share.”


Rob Reid glasses 150

Rob Reid: Is Steve Webb past his sell-by date?

As pensions minister Steve Webb looks to a potential levy on defined contribution schemes to provide for a level of guarantee employers must wonder if DC is going to end up being that much cheaper than DB after all the costs and obligations are added up. This movement to change is built on the premise […]

Octopus moves to maintain qualifying status for Titan VCTs

Octopus Investments has launched a new venture capital fund to allow three of its existing Octopus Titan funds to retain VCT qualifying status. The Octopus Titan VCTs 1-3 will sell their holdings in four underlying portfolio companies – Zoopla Property Group, Graze, Calastone and Secret Escapes – to a new fund that will be financed by institutional investors and […]

Armstrong IM mulls restructure as founders split

Armstrong Investment Managers is currently in talks about the future of the company after founders Ana Armstrong and Patrick Armstrong filed for divorce. The couple have decided to go their separate ways and are in contact with the regulator to discuss the future of their business, which is likely to be restructured. The duo manage […]

What triggers the MPAA?

Jim Grant – Senior Product Insight & Technical Support Analyst There’s sometimes confusion around what triggers the money purchase annual allowance. Find out what does and what doesn’t trigger the MPAA. The money purchase annual allowance (MPAA) is a reduced annual allowance that can apply to contributions to defined contribution (DC) schemes. The following table […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Adam Harper, Director of Professional Development 2nd July 2013 at 9:31 am

    In the Autumn Statement it was thought that HMRC would be exempt from spending cuts so the outcome from the spending review certainly sends mixed messages with many believing that HMRC is fighting a war on tax avoidance that it can’t currently win without changes to legislation.

    It is vague to say ‘we can do more for less’ especially in the current economic climate in which public trust has been severely dented. It is difficult to understand how HMRC will be able to deliver much needed improvements in the administration of tax with fewer resources at its disposal. This news will be disappointing for taxpayers as they will undoubtedly question the serious implications this will have.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm