Tackling the hidden economy

01 September 2016

Tackling the hidden economy: extension of data-gathering powers to money service businesses

Money service businesses (MSBs) are entities which provide money transmission, cheque cashing, or currency exchange services by way of business. This consultation is about a proposal to extend HMRC’s bulk data-gathering powers to include customer data held by money service businesses (MSBs). This data will help HMRC to identify non-compliant customers trading in the hidden economy. The consultation invites views on the proposal and options for implementation, to ensure that it addresses the exploitation of MSBs by non-compliant customers to hide undeclared income, and minimises the compliance burdens on MSBs.

 

Tackling the hidden economy: conditionality

This is a consultation on the principle of conditionality, which would make access to business services or licences dependent on tax registration. Conditionality could help to make it as easy as possible to register for tax, and as difficult as possible for non-compliant businesses to evade their responsibilities

 

Tackling the hidden economy: sanctions

This consultation explores the potential for new penalties and sanctions to tackle hidden economy participants including those who have already been penalised for deliberate non-compliance, but have not changed their behaviour.

 

The three consultations close on 21 October 2016.