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Compliance yield for the Wealthy and Mid-Sized Business Compliance (WMBC) Directorate in financial year 2020 to 2021

The following tables show the compliance yield generated by the Wealthy and Mid-Sized Business Compliance Directorate during 2020 to 2021. The head of duty compliance yield is reported on the same basis as the Annual Report and Accounts.

Wealthy and Mid-sized Business Compliance Directorate

Tax regime	2020-21(拢尘)
Corporation Tax	547
Excise	-
Income Tax	2,047
VAT	1,863
Other compliance interventions	697
Total	5,154

HMRC鈥檚 approach to tax compliance for wealthy individuals and mid-sized businesses

HMRC鈥檚 Wealthy and Mid-sized Business Compliance (WMBC) Directorate aim to put compliance and customer service at the heart of everything we do by taking a 鈥榗ustomer segment鈥� approach, focusing on customers rather than different types of tax, so we can target and coordinate our responses more effectively.

We focus on wealthy individuals, mid-sized businesses as well as public bodies and employment status and intermediaries, providing insight into the wealthy population, their tax affairs and the businesses they own or influence.

We also have a key part to play in promoting and supporting the growth that mid-sized businesses bring to the UK economy. This is part of HMRC鈥檚 wider work to promote growth and minimise cost to business while maximising compliance.

The government has provided extra investment in Summer Budget 2015 to support our work in maximising compliance from our customer groups. Our approach is to increase voluntary compliance among these groups using approaches which promote compliance and prevent non-compliance and challenge those who break the rules.

In 2020 to 2021, WMBC achieved compliance yield of 拢5.15 billion as shown in the table above.

Tax under consideration

Tax under consideration is an estimate of the maximum potential additional tax liability in each case before we have carried out a full investigation of the specific facts or analysis of relevant law. It is not actual tax either owed or unpaid, it is a tool to guide our enquiries to focus on the most significant risks that exist at any particular time.
In many cases, when we have looked at the full facts, it becomes clear that there is some lesser liability or even no further liability at all. Tax under consideration will naturally vary from time to time as outstanding issues are settled and new risks are identified.

The total is a snapshot of work in progress at a given point. Tax under consideration covers all taxes and duties, including Income Tax, Corporation Tax, VAT, PAYE and National lnsurance Contributions and Inheritance Tax. WMBC will now be publishing tax under consideration annually. In addition to the year this annual report relates to, we are also publishing the tax under consideration for the previous year.

A snapshot, as at 31 March 2020 and at 31 March 2021, of the tax under consideration figure for enquiries by HMRC鈥檚 WMBC Directorate is shown in the following table.

Inaccuracy category	Tax under consideration 2019-20	Tax under consideration 2020-21
Accounting standards	拢18,963,633	拢19,656,894
Amended returns	拢6,849,785	拢1,749,331
Apprenticeship Levy	拢2,903,454	拢3,746,108
Assessment - NICS	拢1,473,743	-
Avoidance	拢1,770,588,588	拢1,064,146,564
Capital allowances	拢68,435,821	拢59,912,320
Capital Gains	拢292,867,530	拢752,255,590
Charities	拢24,658,762	拢20,689,367
Claims outside returns	拢118,956,787	拢122,310,542
Company structure	拢106,648,037	拢296,838,520
Consideration	拢10,117,871	拢13,110,194
Corporation Tax Capital Gains	拢102,981,364	拢105,694,177
Covid schemes	-	拢1,997,600
Creative industry and cultural reliefs	-	拢773,745
Crypto assets	拢141,500	拢427,842
Earnings	拢42,684,497	拢34,706,203
Employment issues	拢616,535,882	拢711,466,990
EU issues	拢5,014,918	拢3,474,268
Expenses	拢252,279,894	拢293,146,789
Failure to notify and late returns	拢25,141,821	拢49,646,231
Financial	拢74,335,756	拢76,320,358
General income	拢100,666,008	拢139,770,790
Group litigation order	拢113,944	拢49,427
High Income Child Benefit Tax Charge	拢1,102,226	拢273,739
Income and expenses	拢111,332,340	拢152,811,237
Inheritance Tax	拢246,542,673	拢353,011,237
Input tax overclaimed	拢154,448,282	拢262,691,172
Intangible asset regime	拢54,091,344	拢76,176,848
International	拢541,582,006	拢843,985,385
Investment income	拢84,503,314	拢171,380,877
Land and property	拢138,202,972	拢126,336,367
Loss relief	拢48,161,288	拢53,070,720
Management expenses	拢1,887,183	拢2,172,615
Other issues	拢69,114,747	拢157,249,404
Output tax underdeclared	拢350,851,354	拢386,461,134
Partial exemption	拢19,823,973	拢77,168,069
Partnership issues	拢150,266,906	拢126,779,167
Pension schemes	拢168,576,454	拢175,500,125
Pre return work	拢1,762,328	拢4,664,625
PSA/dispensation	拢4,855,022	拢10,389,481
Research and Development claims	拢55,003,386	拢134,993,890
Stamp Duty	拢55,974,120	拢60,982,407
Statutory allowances/reliefs	拢204,105,898	拢251,168,311
Trading and computations - receipts and deductions	拢142,076,574	拢173,821,146
Transfer pricing and thin capitalisation	拢246,309,664	拢343,842,188
Trusts	拢96,948,697	拢48,277,171
Valuation	拢90,718,918	拢113,147,102
VAT 鈥� other	拢34,490,503	拢4,364,294
VAT scheme arrangements	拢3,013,552	拢86,816
Venture capitals	拢427,326,962	拢351,268,678
Voluntary disclosure	拢5,577,638	拢6,935,477
Total	拢7,151,009,919	拢8,240,899,532

Note: Figures that could risk identifying entities have been aggregated and provided as 鈥榦ther issues鈥� within the table.