RSM responds to Government u-turn on National Insurance rise

Commenting on the Chancellor’s u-turn on raising Class 4 National Insurance contributions, George Bull, senior tax partner at RSM said:

‘Tax evasion is the elephant in the room of the UK tax system. Since the Chancellor’s Budget, there have been many shrieks and much running around as the little mouse of the Class 4 NIC changes caused havoc.

‘This morning, the Chancellor swept the little mouse out of the house by formally abandoning the NIC rises in this Parliament. What should he do now to raise more taxes?

‘We urge the Chancellor to turn his steady gaze on the elephant of tax evasion. Tax evasion and the shadow economy cost the UK Exchequer £11.4bn a year, according to HM Treasury. 

‘If the Chancellor is serious about tax fairness and maximising revenues, then he should resource HMRC to begin a new campaign against tax evasion, starting with an amnesty for tax evaders to encourage them to come forward and pay what’s due.’