HMRC takes substantial tax revenue from SMEs
Local compliance teams investigating small and medium-sized enterprises (SMEs) for HM Revenue & Customs (HMRC) have helped recoup £468m in additional tax revenue during the last 12 months.
With HMRC shifting its resources away from larger businesses due to the fact that SMEs reportedly represent more than half (51%) of the country’s ‘tax gap’, the tax authority was able to secure a sizeable tax boost from smaller firms.
However, there are fears that clamping down harder on the small business community will only serve to create a disproportionate problem for those unprepared for more considerable scrutiny.
Roy Maugham, Tax Partner at UHY Hacker Young, 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.”
The data from HMRC, obtained via a Freedom Of Information request by UHY Hacker Young, also found the tax authority raised £3.5bn in taxes from investigations into unpaid VAT with SMEs in the 2014-15 financial year.
With the 31st January self-assessment online tax return deadline looming large next week, HMRC is making a renewed effort to pursue individuals generating additional income online or producing goods at home.
If you need guidance regarding your tax affairs, your local TaxAssist Accountant can work with you to see if any tax savings can be made, calculate your tax liabilities and arrange payment to allow you to concentrate fully on running your business.
For a fixed competitive price, our tax experts can address any anomalies within your tax return to minimise the risk of an HMRC investigation into your personal financial affairs.
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Last updated: 25th January 2017