A tax reform group has warned that cuts to HMRC may end up hitting the vulnerable the hardest.
The Low Incomes Tax Reform Group fears that the cuts could lead to the revenue pursuing those who can least afford tax advice.
John Andrews, LITRG Chairman, said: “…we believe that the linking of error and fraud is unhelpful and will inevitably portray vulnerable people who make innocent errors as blameworthy. We think the targets set for fraud/error/ avoidance/evasion collections are too optimistic and this may drive a target culture back into HMRC which may put the unrepresented at a disadvantage if they are not aware of either the law or their rights.”
Their concerns are further stoked by the news that private sector debt collectors will be used by HMRC in order to recoup some of the £7bn that Chancellor George Osbourne has targeted.
The group’s concerns certainly seem well founded, after all, with such an optimistic tax collection target they’re hardly going to be sympathetic to accounting errors.
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