HMRC to face questions on tax-dodging shops plaguing UK high streets
Next Wednesday, the Treasury Committee will question senior officials at His Majesty’s Revenue & Customs (HMRC), including the Permanent Secretary, on the work of the department.
The session will cover a broad range of topics which fall under HMRC’s remit. Areas of interest will include how the department is tackling illegal activity by high street shops, such as tax and business rates evasion, dodging tobacco and vapes duty, and ‘phoenixing’. This follows a recent Treasury Committee hearing on the same issue with industry experts.
Despite being given more money and staff to reduce lost tax revenue, the tax gap is reported to have increased from £52.8bn to £59.2bn in the last year. MPs may choose to probe officials on how this has happened and when the benefits of the additional resources are likely to materialise. Concerns about the rollout of Making Tax Digital, including low submission rates on the first quarterly return deadline, are also likely to be covered.
Meeting details
Witnesses could be asked about the impact of recent government and Ministerial changes, HMRC’s customer service performance and efforts to tackle tax fraud on online marketplaces.
HMRC’s customs work, particularly in relation to smuggling and low-value parcels, may also be raised.