This article has been saved to your Favorites!

HMRC's Focus On Pandemic Relief Slashes Compliance Yield

By Alex M. Parker · 2020-08-27 18:17:42 -0400

The British tax authority brought in £7.5 billion ($9.9 billion) in revenue that would have otherwise gone uncollected from April to June 2020, less than half collected in the same period in 2019, the agency said in a report Thursday.

HM Revenue & Customs attributes the fall in collection to the novel coronavirus pandemic, which has shifted the agency's focus from revenue collection to administration of relief programs. From April to June 2019, the compliance yield, or the amount collected proactively by HMRC, including future revenue, was £15.4 billion, according to a report from the agency. 

"During this extremely difficult time, HMRC did everything possible to support and protect individuals, businesses and the economy," the report said. "This included prioritizing work to support customers whilst still tackling serious fraud, criminal attacks and those who promote tax avoidance."

HMRC is administering one of the country's primary relief programs, the Coronavirus Job Retention Scheme, which offers to cover 80% of the wages of employees for companies affected by the pandemic, up to £2,500 per month. The agency also said it was focusing on preventing "abuse from organized criminal attacks, inflated claims and other noncompliance."

--Editing by Neil Cohen.

For a reprint of this article, please contact reprints@law360.com.