News
Tax investigations into SMEs yields up 31%
24 - 09 - 2013
HMRC has netted £565m in additional revenue in 2012-13, with the tax yield received from compliance investigations into small and medium sized businesses (SMEs) jumping 31% in the last year.
The revenue is the result of the work of HMRC specialist taskforces, which have been heavily focusing their attention on small business.
Compliance investigations into SMEs collected £565m for HMRC in 2012-13, up from £434m in 2011-12 (year ending March 31).
‘Prone to mistakes’
Roy Maugham, tax partner in London, says: ‘Small businesses are bearing the brunt of HMRC’s tougher approach to tax investigations. With an ambitious target set by Chancellor to bring in billions of pounds through additional compliance, HMRC is desperate to squeeze as much money as they can from businesses who may owe tax.’
Roy Maugham, tax partner in London, says: ‘Small businesses are bearing the brunt of HMRC’s tougher approach to tax investigations. With an ambitious target set by Chancellor to bring in billions of pounds through additional compliance, HMRC is desperate to squeeze as much money as they can from businesses who may owe tax.’
Mr Maugham highlighted that small and medium sized businesses are ‘often less likely to have accountants to manage their finances, making them prone to mistakes when filling in returns and therefore an easy target for HMRC.’
‘That also means they are in a weaker position to negotiate over allegation of underpaid tax than a big corporate,’ he added.
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