HMRC defends strategy as high net worth unit comes under scrutiny

A special unit collecting additional tax from high net worth individuals raised £416 million during the 2015-16 tax year, but HM Revenue & Customs has not yet identified which of the unit’s approaches to compliance work are the most effective, according to a National Audit Office report.

HMRC defended its methods after some media reports focused on the NAO’s finding that, while HMRC is currently conducting formal inquiries on about one-third of HNW taxpayers, only one such taxpayer has been successfully prosecuted since the unit was formed in 2009.

Read more: My news story for Tax Analysts, 2 November (paywall).