Tue, 2 Apr 2013HM Revenue & Custom’s yield from tax compliance investigations in the construction sector leapt 18% to £78.9m last year, according to NoPalaver Group, a provider of accounting services to contractors.

The yield from tax compliance investigations into the construction sector last year was the highest in the last five years, says the firm, which compiled the figures following its Freedom of Information request to HMRC (see below).
 
NoPalaver says that HMRC’s construction sector crackdown is part of a wider effort to boost tax revenue through compliance work, and that HMRC has targeted the construction sector as it is seen as an easy target.
 
Graham Jenner, director at NoPalaver, says: “HMRC likes to target the construction sector because a little bit of extra effort on compliance work often turns up extra tax revenue from contractors and sub-contractors.”
 
Yields from HMRC compliance investigations into construction sector:

•     2006-07: £56.0m
•     2007-08: £57.2m
•     2008-09: £65.6m
•     2009-10: £68.9m
•     2010-11: £66.9m
•     2011-12: £78.9m
  
  

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