Olympic Games tax warning issued by HMRC

Date: 23rd May 2011

Small businesses in the UK that are working on Olympic Games-related projects have been issued a warning by HM Revenue & Customs (HMRC).

The department has warned that it will be cracking down on any tax breaches with regard to firms working on the London 2012 Games.

HMRC explained that breaches of tax, National Insurance and minimum wage rules will result in "severe financial penalties" for those concerned.

The government has vowed to target firms who incorrectly classify the employment status of their workers and fail to meet their obligations with regard to statutory CIS or PAYE returns.

Mike Eland, the department's director-general of enforcement and compliance, commented: "We aim to help contractors and employers understand their responsibilities and comply with their obligations but we will also catch and deal with those who deliberately break the law.

"This is only fair to those businesses that do play by the rules and want to compete on a level playing field. Only those who choose to break the rules, or deliberately evade the tax they should be paying, will be targeted. Honest businesses have absolutely nothing to worry about."

Posted y Jacob Williams