HMRC's new Managing Deliberate Defaulters came into being in February this year. The aim is the catch know tax cheats (one wonders why they were caught before) naming and shaming them and/or forcing them to undergo the pain of having HMRC going through their business records with a fine tooth comb. (The thought of having HMRC sifting through my records would be enough for me!). They may also be fined up to £5,000!
I can't say I know of any one that would fit in such a category, but I am sure HMRC has it facts right. But us little folks who walk the straight and narrow keeping our tax records up to date shouldn't get too comfortable. The Single Compliance Process (SCP) proposes to enquire across a range of taxes, which comes as a change of tactic for HMRC who would normally undertake a single tax check such as VAT or PAYE. So it seems like any of our tax affairs are likely to be investigated at any moment (ok not yet, but when it is all agreed).
The new plan is that HMRC will set up taskforces who will get skilled the in the particular sector (e.g. building trade) and armed with these new skills will investigate the targeted sector.
Last year the Revenue was looking into the affairs of doctors, and this year we have seen the Revenue targeting restaurants, plumbers, and the latest being tutors, coaches including fitness trainers. This is on top of the VAT initiative which came to an end in September and the announcement that businesses will be investigated for proper (or improper) record keeping. The Revenue is still working on the number of businesses that will be investigated for record keeping as it appears that the intitial 50,000 businesses was too ambitious.
So, it looks like one way or another we may get a knock on our door by Her Majesty's Revenue and Customs. Need I say don't panic? It really is not a reason to panic if you have no reason to worry about your tax affairs. Such confidence of course comes from keeping your records up to date and having the support of a good accountant.
I'd like to think none of our clients will have any need to panic as we always say - talk to us before you pay money to the Revenue.
I am sure there will be lots more to say when all this pans out in the weeks ahead.
Nadine believes all businesses should have access to an accountant no matter how small, and has created a unique bookkeeping and accountancy support offer which ensures the service is personal, supportive...