Amidst all the sharp power it is exercising, HMRC has been sending letters asking savers to explain why their “effective rate of tax” is lower than the national average.
In the letters HMRC says: “Looking at the figures in your self assessment tax calculation for the tax year ended, we can see that your effective tax rate is lower than average for people with a similar amount of income to you. This could mean that there is something wrong with your tax return.”
It is thought such letters are being sent to anyone identified by HMRC computer systems.
Critics say that in the first instance HMRC itself should be checking the self assessment tax returns on which explanations are often provided.
The letters also note that "paying the right amount of tax is important as it helps pay for the public services that we all rely on".
An HMRC spokesman said the letters are part of a trial to help individuals identify any mistakes they may have made on their self assessment return.
The spokesman denied that the letters are being send out widely, estimating that 1,000 letters have been sent out so far.
“We want to understand whether this approach will help individuals complete their self assessment returns correctly," said the spokesman.
“We are issuing 1,000 letters to customers with an income of £150,000 or more who have an effective rate of tax of 22% or less. If a customer is content that their return is accurate then they do not need to do anything."
Figures released last week showed that HMRC has gained an additional £3.2 billion over the past year as part of the record £23.9 billion which was collected for the year to the end of March.
Comments
How many billions has Northern Europe and the EU had to stump up over the decades to pay for new schools, hospitals, roads, bent politicians etc here - that should have come from Portugal's own taxation?
And, tax paying still being such a novelty here - the northern EU will still be paying for decades to come!!!
RyanAir them out !