Daily Headline – 19/02/13

UK wealthy find £5bn a year tax loophole

British HMRC flagThe UK tax-man (HMRC) is missing out on £5bn a year because the wealthy are paying tax expert companies to help them avoid paying the correct amount.

The Guardian reports:

Margaret Hodge, a former Labour minister, said rich businessmen designing the schemes were “running rings” around HMRC.

She said HMRC had an “appallingly bad record” at catching tax cheats, having fined just 11 people for promoting tax avoidance since 2004 – despite 10,000 people a year coming forward to report tax avoidance schemes.

What is £5bn to the UK?

In 2012 government spending on education went down by £2bn from £58.28bn to £56.27bn so £5bn could help avoid many of the cuts and economic difficulties the UK is currently experiencing.

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