Productivity gains begins at home
November 22, 2017
"Unsurprisingly, there was a focus on avoidance and evasion. A lot of attention has been paid to this by successive governments and many of the new measures are actually restricting reliefs or dealing with anomalies in the tax system.
The most significant single measure is a change to deal with the digital economy focused on royalty payments to low tax jurisdictions. This is expected to raise £800m over the next five years and more importantly was very clearly signaled by the Chancellor as a direction of travel - he's casting the UK tax net as wide as possible.
“Government is also investing in HMRC, which will allow them to extend their activities targeting mid-sized businesses and wealthy individuals. To date the focus has been the biggest businesses and the wealthiest people. It's perhaps not unexpected that the Chancellor is looking to increase the amount he collects by seeking productivity gains in his own Revenue raising department."