Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

HMRC probes nearly 800 major UK firms over suspected tax underpayments with UK banks suspected of underpaying £7.9bn

by August 27, 2024
August 27, 2024
HMRC probes nearly 800 major UK firms over suspected tax underpayments with UK banks suspected of underpaying £7.9bn

HM Revenue & Customs (HMRC) is actively investigating 791 of the UK’s largest companies for suspected tax underpayments, a figure that represents nearly 40% of the country’s biggest businesses.

According to a study by Thomson Reuters, these investigations span across critical sectors such as banking, telecommunications, pharmaceuticals, retail, and oil and gas, underscoring HMRC’s increasing focus on ensuring tax compliance among major corporations.

Ray Grove, Head of Corporate Tax and Trade at Thomson Reuters, highlighted the escalating importance of tax compliance in today’s economic climate: “The scale of HMRC investigations into large businesses shows the growing importance of tax compliance. Slow global growth means that many countries, including the UK, are looking towards tax investigations into large businesses to help close gaps in their finances. That means more intensive scrutiny by tax authorities and an expectation of more penalties.”

The banking sector is particularly under the spotlight, with around 70 banks suspected of underpaying up to £9.3 billion in taxes as of March 31, 2024. This suggests that each bank might be underpaying an average of £132.5 million. Similarly, the retail and oil and gas sectors are being closely examined, with HMRC estimating underpaid taxes of £5.5 billion and £3.9 billion respectively. For retail, this translates to an average of over £50 million per business, while for oil and gas firms, the figure stands at £64.9 million per company.

The focus on banking is especially noteworthy, as the sector’s tax liabilities have risen sharply, with the total value of tax under investigation climbing from £6.1 billion in 2018/19 to £9.3 billion in 2023/24. Banks often face complex tax challenges, particularly due to their reliance on third-party providers for IT and other back-office functions, which are frequently based in different tax jurisdictions.

Grove further emphasised the growing pressures on tax departments: “Amid mounting complexities in reporting and compliance standards, tax leaders are increasingly being looked to by their CFOs for strategic and operational counsel. Corporates must meet this increased pressure by investing in the right talent and technology in their tax departments to ensure that they remain compliant and strategic in today’s fast-evolving tax landscape.”

To address these challenges, Thomson Reuters has introduced innovative solutions such as Checkpoint Edge with CoCounsel, a generative AI assistant designed to streamline tax research. CoCounsel enables tax professionals to quickly navigate complex queries through a secure AI chat interface, drawing on vast databases of trusted Thomson Reuters content. This technology allows even junior professionals to perform high-quality research efficiently, reducing reliance on senior colleagues’ expertise and helping companies stay ahead in the compliance game.

The intensifying scrutiny by HMRC serves as a stark reminder for large businesses across all sectors: tax compliance is no longer just a legal obligation but a critical element of strategic planning and risk management.

Read more:
HMRC probes nearly 800 major UK firms over suspected tax underpayments with UK banks suspected of underpaying £7.9bn

0
FacebookTwitterGoogle +Pinterest
previous post
Kamala Harris is the most left wing major party candidate for the presidency in post-World War II America
next post
Biden is in charge of country on second straight vacation, White House insists

You may also like

How to reduce the risk of insolvency in...

November 29, 2022

Secrets of Success: Emma-Louise Fusari – Founder of...

March 8, 2024

Will our high streets crumble under the pressure...

November 7, 2023

3 Key Benefits of CRM and ERP Solutions

June 4, 2025

Next looks set to pick up troubled vintage...

March 28, 2023

Stricken electric van-maker Arrival in fresh rescue funding...

November 9, 2023

CBI urges Jeremy Hunt to rethink tax grab...

February 27, 2023

Key Considerations for UK Company Registration: Simplifying Procedures

April 10, 2024

Can Mike Malott Become Canada’s Next UFC Superstar?

May 26, 2025

Unlock the power of employer branding to build...

June 18, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved