HMRC’s tax avoidance and evasion programme raised £29bn in taxes during 2015-16. This equates to around 5% of the total tax receipts for the same period.

This clearly demonstrates that HMRC’s increased activity in tackling tax avoidance and evasion is getting results. However, interestingly, the National Audit Office’s report notes that HMRC expects to repay £9.6bn due to taxpayers successfully challenging tax demands.

What does this mean for you?

The risk of being subject to an HMRC enquiry is increasing, particularly if your tax affairs are complicated.

If you are subject to a tax enquiry it is important to know your rights and seek advice and assistance from an appropriately qualified professional. The fact that HMRC expects to repay £9.6bn of overpaid tax suggests that not all enquiries or demands will be successful. Having the best advice at the right time would give you the greatest chance of successfully challenging HMRC.