U.K. Taxman out to catch the middle class family nanny

The Telegraph reports:

HM Revenue & Customs will attempt to claw back tens of millions of pounds from families who avoid paying tax and national insurance.

Under the new “nanny tax” crackdown, new rules next year will require parents to contact the HMRC every time they pay their nanny, rather than once each quarter.

Amid broader measures to tackle tax evasion and fraud, parents caught breaking the law face a maximum penalty of repayment of all missed tax plus a fine equivalent to the sum of the tax.

Accountants say many families wrongly assume nannies are self employed and pay their own taxes but many are in fact knowingly evading paying their fair share of tax.

Individuals who officials believe are already aware of the rules, such as accountants or barristers, will face criminal prosecution.

The welfare state is hungry for revenue.