LONDON: Tax officials have raked in £160 million from clamping down on income from prostitution, drugs and cash-in-hand work in the past four years.
The ‘hidden economy’ is hard to tax as much of the money is never declared, including cash payments to tradesmen. But as the Government unveiled new rules dedicated to cracking down on tax-dodging.
HMRC said it had collected £160million after ‘stepping up the fight’ against hidden earnings.
It outlined plans ‘to tackle those who are determined to operate beneath HMRC’s radar’.
Accountants claim that £40billion is lost in potential tax from the hidden economy.
