The highest outstanding student debt in the UK has topped more than £250,000, figures obtained by Money show.
One student now owes £252,554, a record high labelled “truly alarming” by the National Union of Students.
Meanwhile, the largest cumulative repayment a graduate has made is more than £137,000, while one plan holder has accrued more than £64,000 in interest alone.
And, as of the end of September, more than 2.2 million people had an outstanding loan balance of more than £50,000.
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It comes 12 years after student loans were tripled in the UK, rising from £3,000 a year to £9,000 under David Cameron’s coalition government. The purpose of this was to compensate for an 80% cut to higher education teaching budgets, made at a time when the country was enacting austerity measures to recover from the financial crisis of 2008.
Last month, the new Labour government announced it was reversing the 2017 tuition fee freeze, and from next year it will cost £9,535 a year.
Figures seen by the Money blog show that in the past five years, just 5.8% of student loan balances have been paid off in full – and many students, particularly those who owe some of the highest amounts, will never be able to be fully debt-free before the loan is wiped (this happens depending on plan type, but it is usually between 30 and 40 years after graduating).
The highest amount a graduate has repaid is now almost £138,000.
Loan Plan 1 is for graduates who attended university before the tuition fee rises (before 2012). Fees tripled for those on Plan 2, which is why they top the tables for the amount owed and interest outstanding.
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The Student Loan Company (SLC) can also charge non-compliance interest – usually up to 3% – and is applied to balances where a graduate fails to respond to requests for information, loses touch with the SLC or doesn’t keep their contact address and employment information up to date.
As of the end of September, the highest amount applied to a single balance was £18,300.
The SLC was keen to stress that some of the highest balances outlined above are simply “not the norm”.
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For those who owe the highest amounts, some may have taken out several student loan products (so they may have started several courses, taking out multiple loans) or have taken courses that run up to six years in length (for subjects such as medicine, dentistry or veterinary science).
The SLC said: “On average, graduates leave study with a debit balance of £48,470 in England.
“These exceptional balances are a function of government policy that in certain circumstances exempts specific courses from repeat study restrictions, permits funding for additional years of study, and results in SLC awarding additional years of funding when an individual demonstrates compelling personal reasons.”
Nick Hillman was a special adviser to the government at the time the new tuition fees were introduced and is now director of the Higher Education Policy Institute.
He told Money: “At the time we did not imagine someone could have accumulated debts of this level.”
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Even taking out the maximum tuition fee loan and the maximum maintenance loan (now £13,000 for someone living in London, not with parents) he said it is difficult to understand how a single person could have racked up £250,000 in debt in just over a decade.
“I am struggling to understand it,” he said. “I want the student loan model to reclaim public confidence, but these outliers suggest it certainly is not working at the margins.”
With millions now owing more than £50,000 (including interest), it suggests that while £250,000 in debt may be unusual, eye wateringly high debt is not.
Nick said the model generally works: “But my biggest worry is I want people to have faith in the way we are funding students and universities.”
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‘Truly alarming’
Alex Stanley, vice president for higher education at the National Union of Students, said the figures were “truly alarming and demonstrate how unsustainable the current situation is”.
A recent housing survey by the union found one-third of students were struggling to pay housing costs, with 17% resorting to food banks.
“Not only do student loans fail to provide students with the quality of life they deserve, but they must suffer a debt burden which threatens to curtail their ambitions, too,” Mr Stanley said.
“This is a growing crisis that threatens the future of higher education and the financial well-being of countless people whose only crime was to want to better themselves.
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“The government must commission an urgent review of student finance and higher education funding. We must explore sustainable solutions that ensure access to education without the crushing weight of debt. It is imperative that we create a system that supports students, rather than one that leaves them struggling for decades.”
De recente speculaties rond de Ripple vs. SEC-zaak hebben de XRP-koers opnieuw in beweging gebracht. Investeerders anticiperen op een mogelijke schikking of afwijzing, wat voor een koersstijging zorgt. Ondanks een lichte daling vandaag blijft de markt optimistisch, mede door sterke whale-activiteit en voorspellingen van analisten die wijzen op een potentiële stijging richting $3,50 of hoger. Met de zaak in een cruciale fase blijft de vraag: wat gaat Ripple dit weekend doen?
Kan de Ripple vs SEC-zaak deze week worden afgesloten?
De speculaties over een mogelijke afwijzing of schikking in de Ripple vs SEC-zaak zijn recentelijk toegenomen. Vooral nu de Amerikaanse SEC haar eerste besloten vergadering houdt onder de nieuwe waarnemend voorzitter Mark Uyeda, verwachten velen in de XRP-gemeenschap een belangrijke uitkomst in de lopende zaak uit de vergadering.
Het is echter vermeldenswaard dat ex-SEC-advocaat Marc Fagel dergelijke beweringen onlangs heeft afgewezen. Desondanks bleven de marktliefhebbers vertrouwen houden in het positieve nieuws dat eraan komt, wat op zijn beurt de XRP-prijs aanzienlijk zou kunnen verhogen.
In een verhitte discussie op X deelde ex-Ripple-functionaris Sean McBride zijn perspectief op de langlopende Ripple vs SEC-zaak, wat speculaties over de oplossing ervan aanwakkerde. In antwoord op de vraag van een XRP-liefhebber suggereerde McBride dat de zaak binnen een week kon worden afgewezen of geschikt.
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Opmerkelijk is dat hij neigde naar een schikking, verwijzend naar de alomvattende aard ervan en het potentieel voor vertrouwelijkheid. “Ripple, Garlinghouse en Larsen hebben allemaal recht op compensatie,” merkte hij op, eraan toevoegend dat Ripple ‘letterlijk het script had omgedraaid voor de SEC.’
Zal de XRP-zaak worden afgewezen of geschikt?
Het gesprek ontvouwde zich verder toen McBride mogelijke uitkomsten belichtte als de zaak zou worden afgewezen. Hij suggereerde dat Ripple de SEC zou kunnen aanklagen voor schadevergoeding, maar hintte erop dat een schikking waarschijnlijk dergelijke zorgen discreet zou aanpakken.
Ex-SEC-advocaat Marc Fagel bestreed deze beweringen echter, en stelde dat een tegenvordering geen juridische grond zou hebben vanwege eerdere gerechtelijke uitspraken tegen Ripple. Hij verwierp ook het idee van achterkamerschikkingen, en benadrukte de transparantie die vereist is bij SEC-resoluties.
Wat gaat XRP dit weekend doen?
De XRP-prijs daalde vandaag bijna 2% en werd verhandeld op $3,11, terwijl het handelsvolume 3% daalde naar $8,3 miljard. Opmerkelijk is dat de crypto schommelt tussen de $3,27 en $3,11 in de laatste 24 uur. Ondanks de prijsdaling steeg de XRP Futures Open Interest met 1,3% naar $6,9 miljard, wat het sterke vertrouwen van de investeerders weerspiegelt.
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Ondertussen heeft analist Meesku een voorspelling gedaan: zo verwacht hij dat XRP op korte termijn zou kunnen stijgen naar $3,50 of zelfs hoger. Hij gelooft dat recente whale activiteit en de verwachting van nieuwe financiële producten deze groei zouden stimuleren.
Ter ondersteuning van deze visie merkte hij op dat XRP donderdag een abrupte prijsstijging van 5% in slechts enkele minuten ervoer te midden van berichten over ETF’s. De opwinding zorgde kort voor een rally van XRP naar $3,30, maar sindsdien is de prijs gedaald naar $3,13.
XRP koers. Bron: TradingView
Hoewel volatiliteit een belangrijke factor blijft in de korte termijnvooruitzichten, gelooft Meesku dat de markt zich positioneert voor potentieel opwaarts momentum, vooral nu de Ripple vs. SEC-zaak dichter bij een definitieve oplossing komt.
Met de zaak die mogelijk tot een einde komt, lijkt dit een bullish moment te creëren voor de hele markt. Dit biedt kansen om te ontdekken welke tokens hier mogelijk van kunnen profiteren. Hieronder benoemen we drie presales die volgens ons aanzienlijke groeipotentie hebben.
Wall Street Pepe (WEPE)
Wall Street Pepe (WEPE) heeft zich ontpopt als een rijzende ster in de wereld van meme coins, met een indrukwekkende opbrengst van ongeveer $57 miljoen in iets meer dan een maand sinds de presale begon. Door humor, community-initiatieven en een focus op winstgevendheid te combineren, creëert WEPE een unieke plek in de drukke meme coin markt.
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Achter de speelse branding met Pepe-thema streeft Wall Street Pepe ernaar om gewone handelaren te versterken en de invloed van Wall Street’s zwaargewichten uit te dagen. Tokenhouders krijgen exclusieve toegang tot crypto trading-signalen, zorgvuldig geselecteerde meme coin-aanbevelingen en een collaboratieve chatroom die is ontworpen om het succes van de community te vergroten.
Met een huidige prijs van $0,0003665 biedt $ tot wel 21% APY via staking, wat een aantrekkelijke stimulans is voor vroege investeerders. Nu de presale bijna ten einde loopt en de vraag blijft toenemen, wordt Wall Street Pepe snel een belangrijke speler in de cryptomarkt.
Solaxy (SOLX) is een pionier in blockchain-efficiëntie als de allereerste layer 2 solution speciaal ontworpen voor Solana. Het project zet een nieuwe standaard voor snelheid en kosteneffectiviteit in gedecentraliseerde ecosystemen door netwerkcongestie aan te pakken en transactiekosten aanzienlijk te verlagen.
Centraal in het platform staat de SOLX-token, die alle transacties binnen het netwerk aandrijft. Naarmate de activiteit op het netwerk toeneemt, wint SOLX aan intrinsieke waarde, wat zorgt voor een duurzame cyclus van groei en vraag.
Solaxy
Een van de opvallende kenmerken van Solaxy is de aankomende Ethereum Solana bridge, waarmee naadloze interactie tussen twee toonaangevende blockchain-ecosystemen mogelijk wordt. Deze cross-chain-compatibiliteit positioneert Solaxy als een belangrijke speler in de gedecentraliseerde toekomst, met een nut dat verder reikt dan alleen het Solana-ecosysteem.
Met een prijs van slechts $0,00162 tijdens deze fase van de presale biedt SOLX een aantrekkelijke instapkans voor investeerders. In combinatie met staking beloningen tot maar liefst 280% APY biedt Solaxy een zeldzame kans om passief inkomen te combineren met lange termijnwaarde.
Best Wallet (BEST) herdefinieert Web3-interacties met een next-generation wallet-ecosysteem, uitgerust met geavanceerde functies zoals een naadloze fiat-naar-crypto onramp en een state-of-the-art crypto launchpad.
Het bezitten van BEST ontgrendelt een reeks voordelen, waaronder verminderde handelskosten op de Best Wallet gedecentraliseerde exchange, verhoogde staking-beloningen op meer dan 60 blockchains, en prioriteitstoegang tot veelbelovende projecten die worden gepresenteerd op de Best Wallet launchpad.
The Fastest Growing Wallet in Crypto!
In a crowded market, Best Wallet delivers the tools you need to gain an edge. 🚀
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Met meer dan $7,9 miljoen dat al is opgehaald in de presale, heeft het project aanzienlijk vertrouwen van investeerders gewonnen. Geprijsd op $0,0237, met een aanstaande prijsverhoging, biedt $BEST een overtuigende kans voor vroege investeerders.
Morgan Stanley CEO Ted Pick said Thursday that his bank will be working with U.S. regulators to examine whether it can deepen its involvement in cryptocurrency markets.
Pick was asked about his views on digital currencies under the pro-crypto Trump administration. On Tuesday, the acting head of the Securities and Exchange Commission launched an effort to develop a regulatory framework for the nascent asset class.
“We’ll be working with Treasury and the other regulators to figure out how we can offer that in a safe way,” Pick said.
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Morgan Stanley, a juggernaut in the wealth management industry, has been repeatedly ahead of its peers when it comes to crypto. It was the first major U.S. bank to offer bitcoin funds to its rich clients in 2021, and last year it took the lead on offering bitcoin ETFs. That’s because the firm’s financial advisors were getting questions from clients about bitcoin exposure, sources told CNBC at the time.
But under the Biden administration, banks were prohibited from getting deep into the asset class; their trading desks dabbled in bitcoin derivatives but couldn’t own the “physical” bitcoin. It’s a point that Goldman Sachs CEO David Solomon reiterated this week.
“At the moment, from a regulatory perspective, we can’t own” bitcoin, Solomon told CNBC’s Sorkin. “If the world changes, we can have a discussion about it,” he said.
‘Escape velocity’
When it comes to bitcoin, the original cryptocurrency that traces its origin to the 2008 financial crisis, its staying power through volatile trading and industry scandals over the years may prove critical, according to Morgan Stanley’s Pick. One bitcoin now trades for more than $100,000.
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“The broader question is whether some of this has come of age, whether it’s hit escape velocity,” Pick said. “You know, time is the friend [of crypto]; the longer it trades, perception becomes reality.”
Earlier this week, Bank of America CEO Brian Moynihan also signaled a willingness to embrace crypto if regulators allowed it, saying it would be another form of retail payments for customers of the second biggest U.S. bank by assets.
“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard,” Moynihan said. “We have hundreds of patents on blockchain already, we know how to enter the field.”
Whether or not you call this a victory will depend on your refresh rate. People with 4K monitors that have a 60-Hz refresh will probably be happy with most of this, but I can imagine some folks with 120-Hz displays will have to tweak settings to consistently stay above 100 fps. It definitely feels like true 4K gaming at the highest end still isn’t quite achievable with current hardware, at least without the help of tech like frame generation that side-steps the issue.
My main gaming monitor is a 1440p ultrawide with a 120-Hz refresh rate, and I know a lot of my friends have gone the same direction. It’s easier to achieve consistently high frame rates, but it’s also a cinematic experience, on a single display, that easily handles two windows for nongaming work.
Chart screenshot courtesy of Brad Bourque
It’s safe to expect 90- to 120-fps performance across most games at this resolution, which is great news for gamers looking to max out their existing monitor. Single player, cinematic-heavy games like Cyberpunk 2022 and Star Wars Outlaws are still on the cutting edge of graphical fidelity, so I’m not necessarily frustrated that they have some room to grow, especially when they look so good already. Online games and shooters like Marvel Rivals run smoothly without much help, and it’s arguably more important to have consistent frame rates in those games.
Is It Worth It for You?
Anyone considering the RTX 5090, the Founders Edition or otherwise, should truly consider their budget first. The FE version of the card will set you back $2,000 if you buy it directly from Nvidia, and the partner cards with overclocking and liquid cooling will likely be even more expensive. You’ll also need to spend around $1,000 for a monitor that truly takes advantage of your newfound graphical power, and potentially a new 1,000-watt or 1,200-watt GPU. That means you could be looking at a $3,500 bill before you have any other parts, and regardless of performance, I have trouble imagining starting any build like that.
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Photograph: Brad Bourque
The RTX 5090 and RTX 5080 will hit the market at the end of January, with more budget-friendly cards arriving soon after. Without having spent time with the other RTX 50 Series cards, I can’t speak to their relative performance, but I do know their price tags look a lot more appealing. I expect these cards will support multiframe generation out of the box, and that’s awesome news if you just want to sit down and see smooth gameplay.
Previous Founders Edition releases didn’t stay in stock for long, so you might have to wake up early on the 30th to snag one of these if you want one. The whole situation makes the RTX 5090 feel less like the top end of the 50 Series, and more like a showpiece.
It’s the GPU I’d configure while daydreaming of a new rig, not the first part I’d select in a realistic build on PCPartPicker. If the price tag doesn’t give you a moment of pause, then by all means, enjoy your new GPU. For everyone else, I’d wait and see what the rest of the new GPUs look like before you leap.
The latest batch of new Pokémon TCG Pocketcards finally has a concrete release date, but it seems like you won’t be able to trade them right off the bat.
The Pokémon Company announced today that Space-Time Smackdown, Pokémon TCG Pocket’s latest expansion, is set to debut at the end of the month right after the game’s trading feature launches on January 29th. While cards from the last set could all be obtained from a single type of pack, Space-Time Smackdown — which includes a number of monsters from Pokémon Diamond / Pearl / Platinum — will come from packs featuring the legendary Pokémon Dialga and Palkia.
Along with Space-Time Smackdown’s announcement, TCPi also revealed a bit more about how the trading mechanic will involve two new types of in-game currencies — trade houseglasses and trade tokens. It seems as if there will be cooldown periods as well as a cost if you want to swap cards from Pocket’s Genetic Apex and Mythical Island sets with other players. But there will definitely be some waiting involved for people hoping to trade Space-Time Smackdown, which will not be tradeable until a later date after it drops on January 30th.
The partnership aims to expand compute services on Nexus Network via io.net’s decentralized GPU network, as the project works on developing the world’s first decentralized supercomputer.
Decentralized physical infrastructure network (DePIN) io.net announced its newest partner, Nexus Network, a project aiming to provide supercomputer resources to everyone, this week. The strategic collaboration will see Nexus leverage io.net’s GPU clusters to expand its network’s compute power as it builds its ‘Verifiable Internet’.
Additionally, the partnership will strengthen the Nexus zero-knowledge Virtual Machine (zkVM) by integrating io.net’s Infrastructure-as-a-Service (IaaS) platform, furthering Nexus’s mission to make zero-knowledge proof services accessible to all.
Nexus Network is a community of developers that are designing the Verifiable Internet, where trustless computation and verification are integral to digital interactions. The mission of the project is to build a global, distributed supercomputer that is accessible to everyone. It leverages zkVM technology which enables developers to create scalable and secure applications, redefining how users interact with blockchain ecosystems.
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io.net, or the Internet of GPUs, is a DePIN that deploys and manages on-demand, decentralized GPU clusters from globally distributed sources. The protocol includes millions of GPUs that are connected to the IO Network, allowing users to tap into the compute power for various high-0compute needs such as AI, machine learning, cloud gaming etc. io.net democratizes access to GPU compute capacity while reducing costs, expediting lead times, and expanding choice for engineers and businesses.
Expanding Compute Power on Nexus Network
As stated, the partnership will leverage io.net’s robust decentralized GPU infrastructure to expand the compute power available for proof generation within the Nexus zkVM. Via the geo-distributed GPUs, Nexus will benefit from an extended network of validators, bridges, relayers, and oracles across web3 ecosystems.
The added compute power from io.net will enable Nexus Network to enhance zk-proof technologies and make these services accessible to everyone. From accessibility to developers across the world to enterprises and businesses, users on Nexus will enjoy faster and more efficient zero-knowledge-proof generation. This is expected to facilitate blockchain development of scalable, privacy-focused and low-latency decentralized applications (DApps).
Speaking on the partnership, Alex Fowler, Chief Strategy Officer at Nexus, stated:
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“Our partnership with io.net marks a pivotal step forward in advancing the capabilities of Nexus network, By combining our zero-knowledge proof technology with io.net’s decentralized compute infrastructure, we’re creating a more scalable and accessible proving solution that will benefit developers and users globally.”
A New Interconnected, Privacy Focused Supercomputer
The partnership aims to help both io.net and Nexus flourish as well as expand the capabilities of their users. Together, the two companies aim to improve the scalability, reliability, and accessibility of zero-knowledge proving technology. In addition, the two companies will share expertise on how to strengthen the computational capabilities of the Nexus network by optimizing access to GPU clusters, supporting its goal of creating the world’s most powerful computer.
To boost privacy, in addition to the computing power on Nexus, Tausif Ahmed, Chief Business Development Officer at io.net, echoed the statements of Fowler saying:
“Collaborating with Nexus reinforces io.net’s commitment to powering innovative web3 technologies. Together, we’re enabling a decentralized and privacy-first future, where zero-knowledge proofs can thrive at scale.”
The collaboration is also expected to scale the decentralized network of GPUs on the IO Network, as new users join from Nexus. It will also scale the computational resources dedicated to proof generation within the Nexus zkVM, enhancing performance and reducing lead times for developers and enterprises. Moreover, io.net’s geo-distributed GPU clusters will provide a decentralized, high-performance compute layer, boosting the overall resilience and scalability of the Nexus network.
The biggest winner, however, is the wider Web 3 ecosystem. Through such partnerships, the Web 3 industry builds a foundation for a more interconnected, verifiable, and scalable ecosystem. It bridges the gap between innovative infrastructure and practical utility for web3 developers and enterprises.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Friedrich Merz, the frontrunner in the race to become Germany’s chancellor, has warned German companies about the “great risk” of investing in China.
“I say to all representatives of the German economy that the decision to invest in China is a decision involving great risk,” the Christian Democratic party chief said in Berlin on Thursday. He issued his warning during questions and answers after a far-ranging foreign policy speech that highlighted a pro-EU, Atlanticist vision of Berlin’s role on the global stage.
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“My heartfelt request to all companies . . . limit the risk you take in order to avoid endangering your own company if it triggers an immediate write-off,” said Merz.
China was not abiding by western rule of law standards, he added.
“You must expect major disruptions if you take this risk. I’ve talked to a whole range of small and medium-sized and also very large companies . . . If you take this risk and if you have to write off these investments from one year to the next, then please do not, under any circumstances, come to the state . . . for help.”
Back in 2023, Ashi Dissanayake, cofounder of in-space fueling startup Spacium, was so bootstrapped she used the surface of her clothes dryer as a desk, sticking her legs inside the drying machine. Her computer was perched beside Tide Pods and she was surrounded by disembodied robotic arms, working late into the night with her cofounder, Reza Fetanat. Back then, the pair worked out of a tiny Ottawa apartment.
Since then, they’ve moved to an office with real desks, gone through Y Combinator, and, today, announced an oversubscribed $6.3 million seed round led by Initialized Capital. The company is planning a demo mission of their product capabilities later this year, and Dissanayake said they have a “strong pipeline of customers.”
The two cofounders bonded at University of Ottawa over their mutual space obsession and teamed up for research projects. “We were building the rockets, rocket structures, propulsion system, as well as the parachutes that would bring the rocket back,” she said, adding they would put samples in the rockets, shoot them up as high as 30,000 feet, and then send the data back to Canadian labs.
As they worked on research, Dissanayake and Fetanat realized that “the biggest bottleneck” in the industry was the lack of refueling options in space. Right now, a spacecraft has to be equipped with all the fuel it needs for a mission. “And after the mission ends, the spacecraft basically becomes space debris,” she said.
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For longer missions or deep space missions — like, say, colonizing Mars — companies will need to have access to fuel in space. “Our big mission would be to build the space super highway, where we have multiple refueling stations where a spacecraft can come dock, refill, and go about their way,” she said.
Spacium is not the only company with this dream: Orbit Fab is also working on in-space refueling, and has a several year head start. Additionally, Japanese aerospace company Astroscale won a $25.5 million U.S. Space Force contract to build a refueling vehicle.
But Dissanayake feels confident they have a competitive advantage. “We have actually developed a very unique system where we can store the fuel for longer periods of time, which was actually not done before,” she said, declining to give further details.
Dissanayake has a long way to go, but she hopes one day she can take a trip up to space, look out into the abyss, “and then actually see our stations from where we are.”
HM Revenue and Customs (HMRC) is set to hire 5,000 additional tax inspectors as part of a major clampdown on small businesses and their owners.
The expansion, revealed in the HMRC Customer Service & Accounts report published yesterday, aims to secure £6.5billion in additional revenue by 2029/30.
Price Bailey, a Top 30 accountancy firm, notes that this recruitment drive will result in one additional tax inspector for every 1,000 small businesses across the UK.
The move represents a significant shift in HMRC’s enforcement strategy, targeting the country’s 5.3 million small businesses.
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This intensified scrutiny comes as small businesses face increases to employers’ National Insurance and the National Living Wage. The scale of HMRC’s tax enforcement operation reflects growing concerns about small business compliance.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
HMRC is hiring thousands of new officers to target tax dodgers
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PA / GETTY
According to HMRC’s June tax gap report, small businesses now account for 60 per cent of the overall tax gap, up from 44 per cent in 2018-19.
The current tax gap attributed to small businesses stands at £24.1billion. Price Bailey’s data shows HMRC’s customer compliance staff has increased by 26 per cent over the past three years, rising from 25,442 in 2021/22 to 32,017 in 2023/24.
As the firm reports, HMRC is increasingly conducting parallel investigations, examining both businesses and their directors simultaneously.
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Tax inspectors are now more likely to review multiple years of accounts in a single investigation. This enhanced scrutiny comes despite HMRC’s reported struggles with tackling serious tax evasion, including electronic sales suppression in retail and directors avoiding tax debts through company wind-ups.
HMRC is looking to see where business owners are failing to pay tax
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Andrew Park, an investigations partner at Price Bailey, criticised the Government’s previous focus on offshore tax compliance.
“It was clear to anyone looking closely at the numbers that the Government’s plan to slash the tax gap by targeting wealthy individuals with offshore assets was fanciful. It was simply a politically expedient thing to say,” he states.
“To make a serious dent in the tax gap HMRC will need to go after a vast swathe of working people on ordinary incomes,” he explains.
The shift comes as HMRC faces pressure to increase revenue amid rising Government borrowing costs.
“With Government borrowing costs rising and the Chancellor desperate to avoid more tax rises, there is growing pressure on HMRC to save the day by bringing in billions more in revenue,” Park adds.
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Britons could be targeted in HMRC’s efforts to clampdown on tax evasion
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According to Price Bailey, HMRC will be placing particular scrutiny on the costs businesses are trying to claim back as an expense from the tax authority.
“Business expenses account for a large portion of the small business tax gap,” said Park.
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He reveals some striking examples of questionable expense claims: “I have seen owner-managers claiming tax relief for expensive suits, leisure travel, family birthday parties and in one case even a hovercraft.”
Small business owners are being advised to consider protection against the growing risk of investigations.
-SOURCE-Brad-Bourque.jpg)
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