Smaller firms to be targeted as taxman steps up scrutiny
BUSINESS owners are being warned that HM Revenue and Customs is stepping up scrutiny of smaller firms' tax affairs.
New figures show that HMRC collected 40% 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 the 2010-11 financial year.
Lisa Richards, partner at Derby-based chartered accountant and business adviser Dains, said: "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.
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"This, in turn, effectively makes smaller firms 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."
Comments
by Tamas
Wednesday, December 12 2012, 6:42PM
“If this government entered a fishing competition they'd try to win by spending far too much time and effort reeling in the minnows instead of going for the pike.”
by smshogun
Wednesday, December 12 2012, 6:05PM
“What it really means is large organisations can afford the hoardes of fancy accountants and Barristers to defend themselves, but the small company's can't so HMRC can make overinflated tax demands (as they do with estimated) and they will pay without any trouble.”
by dianae
Wednesday, December 12 2012, 4:27PM
“So a small firm which paid more than Amazon is going to be investigated - such a sensible idea”
by DerbyBNB
Wednesday, December 12 2012, 12:54PM
“That's right - go after the small firms and cut deals with the big ones for them to pay little to no tax.”
by Tamas
Wednesday, December 12 2012, 10:29AM
“Geat Britain!
They screw tightens on the deserving people whilst our rich owners lavish their mates with every fiddle going and squander billions of our money globally.
They just don't get it do they, our politicians. They are...string of grossly offensive expletives!”
by BusinessOwner
Wednesday, December 12 2012, 10:07AM
“Screw the little guy while the multinationals get away with murder.
COWARDLY tactics by the taxman.”
by robert_lewis
Wednesday, December 12 2012, 8:57AM
“"This, in turn, effectively makes smaller firms easier targets for HMRC than larger firms"
That about sums it up really! all these corporates moving millions out of the UK, and the small business thats trying to stay afloat is being targeted as they cant afford the costs of an investigation! disgusting.........”