HM Revenue and Customs target smaller businesses
As HM Revenue and Customs (HMRC) increases its focus on smaller businesses, it is advisable that business owners ensure their tax affairs are in order.
New figures show that HMRC collected 40 per cent more revenue in tax and fines from smaller businesses in the last tax year as it steps up its efforts to clamp down on tax evasion.
According to the latest research, HMRC investigations into smaller firms produced an extra £434 million in tax and fines in 2011/12, compared to £311 million in 2010/11.
In many cases, smaller businesses simply do not have the resources to deal with a tax investigation, meaning that demands for extra tax go unchallenged. This, in turn, effectively makes small and medium sized enterprises easier targets for HMRC than larger firms.
If you are the subject of a tax investigation then it is important to seek professional help at the earliest opportunity. However, now is the time to ensure your company’s tax affairs are in order, rather than waiting for the taxman to come calling.
For further information on all related issues (Fee Protection for example), please do not hesitate to contact Stuart Hinnigan at the office.
Author: Stuart Hinnigan FCA CTA
Stuart’s career in accountancy began when he joined Preston based Moore and Smalley in 1994 following his graduation from Lancaster University. He qualified as a Chartered Accountant in 1997 and then chose to specialise in...
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