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False economy

(4 Posts)
Greatnan Thu 24-May-12 07:55:15

The Inland Revenue estimates that ten billion pounds of tax has been written off because there are not enough staff to pursue it. I took early retirement in 1999 because inspectors were being constructively dismissed without any redundancy package - loss of private offices, unexplained and very sudden moves to inconvenient locations, etc.
The change to Self Assessment was purely to save money on inspectors - the details of your tax returns are keyed into the computer by junior staff and the computer is programmed to pick up possible anomalies which are then investigated by the much reduced team of inspectors.
Now, they may have the sense to recruit and train inspectors again who can use their intuition to 'smell' evasion in a way that no computer can.

It remains to be seen what the unintended consequences of cuts to staffing in the NHS and police services will be. Short-termism rules.

fieldwake Thu 24-May-12 08:20:14

Short sighted. Yes false economy big time. If only they would concentrate on the top end of tax payers who employ accountants to avoid 'legally'. Thank you for info

goldengirl Thu 24-May-12 08:50:59

It's not just with HMRC. It's happening in other sectors too. Knee jerk reactions for which we will all pay in the long term. The 'what if' scenario which I came to learn was important when talking through various actions throughout my different careers seems to have gone out of the window and and down the awaiting drain!

AlisonMA Thu 24-May-12 08:51:26

And how on earth are they supposed to track down those earning more than 50,000 so they can take away their child benefit??? The not married are hardly likely to volunteer!