Expert predicts tax trends in Tolley's Tax Digest

Tax expert Anton Lane, founder of Edge Tax in Bristol, has produced a booklet advising on tax trends for the prestigious Tolley’s Tax Digest.

Anton, who has a specialism in complex tax investigations and works with clients globally, set up his Bristol-based company in 2012. He had previously worked for many years with one of the world’s Big Four accountancy and consultancy firms.

He is also one of the specialist contributors who pens guidance for Tolley’s Tax Digest which is a monthly publication covering trends and expertise about the most important topics in tax.

Anton said: "Many people think tax is simple but it's not. For individuals and business owners or directors it can be a complex area with many nuances and often people need professional help to navigate those complexities. Even professionals including accountants need that support too.

"Tax is also something which changes and may change again soon once the outcome of the general election is known so the landscape can change and shift. It’s not easy for business owners and individuals to keep on top of all the changes."

The theme of Anton’s Tolley’s Tax Digest is 'HMRC Investigations: Changes & Future Outlook'. It's the ninth one that Anton has written for the publication over the past 15 years.

In it he looks at COP8 and COP9 (Code of Practice 8 & 9) which are serious for businesses or individuals as one relates to suspicion around alleged tax avoidance and the other around alleged tax fraud.

Latest figures show that between 2022 and 2023 there were:

COP8 – 674 cases opened, 545 cases were closed with a yield in penalties of £72.4 million to the public purse (is that right?). During that year there were 1,121 active cases from years prior to 2022 up to 2023.
COP8 – 417 cases opened, 661 cases closed, and a yield of £89.2 million. During that year there were 2,181 active cases from years prior to 2022 and up to 2023.

These figures are lower than previous years, probably due to the pandemic, more home-working which has created a backlog which is still being worked through.

Anton also talks about wealthy customers, which has a specific meaning for HMRC and for financial professionals. It is estimated there are around 800,000 wealthy individuals in the UK. Wealth is based on an income of £0.2 million or more or assets equal to or above £2 million in the past three years.

He also draws attention to an HMRC crackdown on UK digital platforms such as Ebay, Etsy and Vinted to capture any tax payable from those making money via such means. The first reportable period began on 1 January this year and those platforms will have to report those figures about relevant users to the HMRC by 31 January 2025.

“HMRC's recent crackdown on UK digital platforms such as eBay, Etsy, and Vinted aims to ensure that frequent sellers are properly reporting their income. Platforms are required to report users who are earning more than £1,000 a year and regularly selling items. This initiative targets individuals who are running businesses through these platforms, rather than those who are simply clearing out their wardrobes once a year. The first reportable period began on 1 January this year, and these platforms must submit their reports to HMRC by January 31, 2025," Anton said.

Failure to provide this information could result in a £5,000 fine with daily penalities added.

Anton said: "I'm proud to be an author of Tolley’s Tax Digests and to be able to offer insight and my experience to financial professionals and individuals who want to keep abreast of this moving area of finance. No one wants to be investigated for tax avoidance, evasion or fraud and being informed helps everyone to be empowered around tax."

Anton set up Edge Tax, based in Hambrook, Bristol in 2012 and works with clients globally.