Tackling the Hidden Economy

The Government seeks to support HMRC in the department’s efforts to bring those within the 'informal' economy within the 'formal' tax net. The recently formed 'Hidden Economy Advisory Group' has now set out some preliminary thoughts.

Baker Tilly analysis

A 'Hidden Economy Advisory Group' was established following the Pre-Budget Report. As part of its initial findings, the group suggests that HMRC should make the process easier for those currently in the Hidden Economy to come forward, settle up on past tax irregularities and properly formalise matters going forward. Consideration will also be given to how best to build on lessons learned from HMRC’s past disclosure opportunities and how to educate those working within the informal economy as to the consequences and dangers of continuing tax evasion. A consultation will follow next year.