Hidden Economy Team - Who are they?  

HMRC are looking for more ways to bring out "ghost" tax evasion by the use of Hidden Economy Teams to track down individuals who have not registered for tax. So who are the Hidden Economy Teams?

The Hidden Economy Teams were formally set up in 2003 to find information about low level tax evasion and people who were not in the tax system. The principle behind the Hidden Economy Teams is that they scour publically available information to try to find people who are committing low level tax evasion. This can be from a variety of sources such as newspapers, the internet and other such media.

The Hidden Economy teams will obtain this data and then search the HMRC database to see if they can find a tax record for the individual or business. If they are unable to do so they will automatically assume that the individual is probably guilty of tax evasion.

The usual method of contact to what the Hidden Economy teams consider to be tax evading individuals is by letter. The first that the individual will know about this is when they receive a letter suggesting that HMRC have information which suggests that the individual may not have declared all of their income and asking them to make contact with the Hidden Economy Team.

Since the formation of the Hidden Economy Teams in 2003 they have undertaken over 30,000 Inland Revenue Investigations per year and according to statistics available on government websites have generated additional tax etc as a result of tax evasion of over £145 million pounds.

As a result of the merger between HM Customs & Excise and the Inland Revenue the Hidden Economy team have also been targeting businesses where they believe that VAT is due but not paid. Their remit is also soon to be rumored to cover tax credits.

The success in respect of the Hidden Economy Teams (as viewed by the HMRC) is that they are a relatively cheap way of raising a tax investigation into relatively low level omissions or businesses failing to notify HMRC of their liability to tax.

Recently the Hidden Economy Teams have been active in visiting the business premises of individuals or their homes to ask questions relating to their tax affairs in order to start an Income Tax Investigation.

Gilbert Tax Will deal with The Hidden Economy Teams For You

For most people, the simple thought of having to deal with an Inland Revenue Investigation is so terrifying that they avoid the issue altogether and often envelope themselves in even greater tax difficulties. There is no need to let problems large or small with the HMRC escalate to the point where your quality of life and happiness suffer.

At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation and significant experience in dealing with the Hidden Economy Teams. We are also skilled in negotiating disclosure, relative to tax evasion, so as to avoid or limit financial penalties.

For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at scott.gilbert@gilberttax.co.uk

Information about the different types of tax investigation cases we deal with on a regular basis.