HMRC's Expat Team Targeting Financial Sector Professionals

By Fiona Moore, for 08 October, 2014

Tax investigations into expats working as investment bankers or fund managers in the UK yielded record revenue in 2013/14, and enforcement activity is expected to increase, according to law firm Pinsent Masons.

Pinsent Masons said that HMRC's Expat Team had raised GBP153.6m (USD247m) in the last financial year. This was a 27 percent increase on 2012/13 levels, despite a decline in bonuses for people working in the City of London.

The firm believes that in order to meet challenging revenue targets, HMRC will continue to invest heavily in investigations that will focus on higher earners, such as overseas staff working in investment banking, private equity, and hedge funds.

Ray McCann, a Partner at Pinsent Masons, said that the complicated tax affairs of these professionals and a lack of familiarity among expats with UK tax rules could lead to expats making mistakes on their tax returns. He noted that "they may also have income from investments in other countries, or even overseas tax liabilities that all need to be properly documented and accounted for to HMRC."

However, he added: "Often it is the employer that makes a mistake and in many cases it is possible that the employer has to pick up the bill."

He concluded that "the fact that HMRC's increase in yield is against the tide of overall falls in remuneration for investment bankers shows how successful they are being in this area."

Tags: Tax | Investment | Private Equity | Law | Banking | Hedge Funds | United Kingdom | Enforcement | Professionals | HM Revenue And Customs (HMRC) | Revenue Statistics | HM Revenue And Customs (HMRC) | Expats | Working Abroad | Work | Working Abroad | Tax | Working Abroad |


News Archive