Compliance investigations undertaken by HMRC into the SME sector netted £565m in penalties and fines for the 2012/13 tax year. This haul represents an increase of 13% on the prevous year as HMRC continues its onslaught on the corporate sector, desperate to hit government-imposed tax recovery targets.
The SME sector is being seen as ‘easy pickings’ in respect of tax investigations as SMEs often lack the budget for tax advice and representation by tax specialists, unlike the larger corporates.
The government hopes to raise around £7bn a year through tax compliance investigations, which will focus on ensuring a company has fulfilled its tax obligations with HMRC. Tax compliance includes the submission of forms such as the corporate tax return and supporting calculations, preparation of claims and elections and dealing with HMRC enquiries.
If you’d like to discuss your company’s tax position and exposures, Curo’s head of tax, Julia Whelan can advise. Email Julia on [email protected] or call her on 01527 558539.
Curo Chartered Accountants