HMRC shares ‘weird and wonderful’ tax return excuses
HMRC has revealed some of the more unique excuses taxpayers have given for missing the self-assessment deadline over the past decade. One person claimed to have been cursed by their mother-in-law while another blamed their hamster, saying it had eaten their post. In another, a DJ said they had been too busy partying in a bowls club to file a return, while someone else said they were unable to collect the forms as they were cruising round the world in their yacht. If only!
HMRC statistics
HMRC note that there are about 2.2 million VAT registered traders. The total number of private sector employers is some 1.4 million. The total number of businesses registered for either or both PAYE and VAT is 2.67 million, which is 45% of all UK businesses. These businesses, most of which are companies, collect and pay over to HMRC over £140 billion in VAT and PAYE of over £300 billion!
Around 1.5 million companies pay over £50 billion in corporation tax.
Insurance premium tax brings in £6.2 billion
Air passenger duty contributes £3.7 billion
The capital taxes – capital gains tax (CGT) and inheritance tax (IHT) affect comparatively few people;
260,000 individuals and 22,000 trusts pay a total of £8.8 billion in capital gains tax.
HMRC’s latest numbers suggest that about 22,000 estates (on death) and 5,000 individuals (via taxable lifetime gifts) part with over £5 billion in inheritance tax. Compared with even insurance premium tax this is a very low number. But it is the one that is most emotive (with many people feeling that it is an unfair double tax; that someone has paid tax all their life on income/earnings etc and having built up their estate to leave to their children (or whoever), it is then taxed again on death!) Who knows if IHT will ever be significantly changed….(but there is a Budget coming up soon so if there are any IHT changes, we will be sure to report on them).
