Play all audios:
HMRC IS EXPANDING ITS CRIMINAL INVESTIGATION POWERS AS IT COMES UNDER INCREASING PRESSURE TO RECOVER LOST REVENUES FROM TAX EVASION. 06:07, 30 May 2025 HMRC is reportedly looking at
prosecution powers in a tax evasion clampdown. HMRC is expanding its criminal investigation powers as it comes under increasing pressure to recover lost revenues from tax evasion. Data shows
HMRC conducted more dawn raids over the previous year, following 648 raids in 2023/24. HMRC launched 430 new criminal investigations and more than 10,200 civil investigations into suspected
fraud and charged around 17,000 penalties for deliberate non-compliance. HMRC is also preparing to meet a government target of increasing individual prosecutions by 20% by 2030. READ MORE
LLOYDS BANK BRINGS IN BIG CHANGE AND ANYONE WHO IS IN A 'COUPLE' WILL BENEFIT Gideon Sanitt, partner at law firm Macfarlanes, explained, “There has always been a lot of rhetoric
about HMRC not targeting tax fraud strongly enough, but HMRC did not appear to have the same priority over criminal prosecutions.” Article continues below “However, new funding, commitments
to close the tax gap, and more direct measures like the whistleblowing scheme may represent a real shift in how HMRC deals with fraud,” Sanitt added. “HMRC is targeting businesses that have
not taken responsibility for the actions of their suppliers,” says Debbie Jennings, VAT director at accountancy firm Moore Kingston Smith. “It is not possible to plead ignorance or turn a
blind eye”. She said: “If firms don’t have robust due diligence processes, they may find themselves with expensive VAT bills. HMRC will deny the input tax claimed and also charge penalties.”
Article continues below “In some circumstances, HMRC may even look to cancel your VAT registration and deny all input VAT recovery – including that incurred on entirely legitimate
purchases,” Jennings added. In the Spring Statement, Rachel Reeves announced that HM Revenue & Customs (HMRC) would be tasked with increasing the number of decisions to prosecute tax
fraudsters by 20% at the end of 2029/30. This would mean an additional 100 cases based on the 2023/24 year. HMRC is responsible for undertaking criminal investigations to gather the
necessary evidence, which it then passes over to the relevant prosecuting authority to make the decision on whether the case can go forward for prosecution.