HMRC Cracking Down on Self Assessments and Small Businesses

HMRC has been set a huge challenge of obtaining £7bn in additional revenue a year by 2014-2015 and it is leaving no stone unturned!

 

HMRC is now cracking down on smaller amounts on Self Assessments by using a more scientific approach.  It almost doubled the amount it received from investigations in the tax year 2011-2012 compared to 2010-2011 owing to a more detailed analysis of tax returns.

It is placing particular emphasis on checking the treatment of capital gains tax when businesses are sold.  Large sums of money can be involved and it is an area where mistakes can easily be made.

HMRC is also targeting tax evasion particular to certain professions eg plumbers and doctors.

The other area which is receiving extra scrutiny is the treatment of employee benefits such as company cars.

 

Small businesses are also being looked into as a rich source of extra funds – income from investigations increasing a third.  Once again the reporting of employee benefits is being honed in on.  Checks are being made as to whether company cars are properly accounted for – are they really being used for business purposes at any given time? Private healthcare and private fuel are also being checked far more thoroughly than ever before.

 

Please give us a call if you have concerns over your Self Assessment or accounts.  We would be more than happy to ensure you comply with all the correct accounting treatments.  As you will see from our website we also offer insurance to cover the additional costs associated with any investigation which you may be subject to.

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