The tax gap is set to increase

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It is rare that I agree with Chas Roy-Chowdhury at the ACCA, but I do on this one:

Chas Roy-Chowdhury head of tax at ACCA said: "If the govt wants to fill the so -called tax gap and wants the tax system to operate effectively then they should not cut [ HMRC jobs and budget.]

We have already seen at least 20,000 jobs cut since 2005 therefore HMRC have already done there part. We cannot see how HMRC will be able to cope if it has another 20,000 head count reduction."

I gather it’s not 20,000. It’s only 10,000 according to reports in  some papers today — which is 14% of staff.

But the tax gap will rise significantly as a result. I guarantee it.  And this is sheer folly and shows just how ideologically driven these cuts are.

The thought that Osborne could not organise the proverbial in a brewery does cross my mind, often.


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