An FOI request by RSM UK revealed that HMRC has reduced support for taxpayers seeking help, while the number of VAT interventions has increased by 82% over the last two years. The increase has primarily focused on wealthy and mid-sized businesses, possibly to generate additional VAT revenue. Complaints have arisen about the level of support offered by HMRC since the pandemic and the UK’s departure from the EU. The FOI request shows that the total number of VAT interventions has risen significantly, indicating a change in HMRC’s resource allocation. The increase in interventions for large and mid-sized businesses suggests that HMRC is increasingly focusing on those most likely to be responsible for collecting large values of VAT. HMRC’s approach to large business interventions involves sending thematic nudge letters, which can create a significant compliance burden for businesses.
Source RSM
