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HMRC adds £468m to its coffers after tax clampdown

Investigations into SMEs and the handling of their taxes generated £468m in additional taxes for HMRC in the 12 months ending March 31 last year. This is according to UK accounting group UHY Hacker Young.

The group revealed that HMRC has increased its efforts in investigating SMEs due to larger firms becoming “less profitable” as a result of improved resources, and in-house tax specialists putting a stop to HMRC investigations.

UHY Hacker Younger said that SMEs might be “more prone to errors” due to restrictions in financial experience, budget and time regarding tax self-assessments.

Tax Partner Roy Maugham said:

“There is increasing pressure on small and mid-sized businesses to spend their time and money on systems to ensure that tax affairs are accurate and up to date. Without adequate care, small businesses are at risk of being pulled up over minor mistakes or small disparities, which could incur disproportionately heavy fines and penalties.”

In 2016, the department of HMRC responsible for looking into SMEs’ tax was divided into two sub-departments. One now investigates mid-sized and wealthy business compliance, while the other focuses on small business and individual compliance.

In light of HMRC’s latest move, small businesses would be wise to be more vigilant than ever. For any business not already doing so, this would be a good time to consider employing the services of an accountant in the Wirral to ensure that all figures are accurate and up-to-date.

Posted by Louise
February 2, 2017

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