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HMRC to clamp down on small business

Sep 01 2010

SMEs could be in line for a tax inspection

A barrage of tax investigations is set to hit small businesses this autumn.

Abbey Tax, provider of fee protection insurance to firms of accountants, says that the coming months will see an increase in the number of firms being scrutinised under HM Revenue & Customs’ inquiry process.

The measures are designed to help the government plug the £158 billion hole in public finances.

Abbey Tax expects the number of HMRC inquiries into small businesses to go on increasing over the coming months, with tax inspectors being tasked to bring in as much money as possible, as quickly as possible.

The crackdown comes at a time when businesses are already under pressure, with 25 percent of UK SMEs currently exceeding their working capital, according to research from Venture Finance.

Paul Mason, senior manager at Abbey Tax, says: ‘If you want to claim expenses, make sure you have the receipts to back them up.’

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