Taxman is 'completely unfair' to SMEs
Jan 06 2012
Some 20,000 small firms are in line for visits from the taxman in 2012-13
The Forum of Private Business (FPB) believes HMRC is ‘harassing and mistreating' small businesses, while simultaneously agreeing ‘sweetheart deals' with some of the UK's largest companies.
The FPB has written to David Gauke, the exchequer secretary to the Treasury, to complain about HMRC imposing fines for slight delays in tax bill payments as well as records errors or omissions.
Meanwhile, the Public Accounts Committee estimates that unpaid taxes from large businesses could amount to more than £25 billion, prompting prime minister David Cameron to pledge action on tax avoidance.
In addition to facing potential fines of up to £3,000 for records deemed inadequate, small companies are being forced to negotiate ever more costly red tape at a time the government is pledging to reduce bureaucracy, says the lobbying group.
Some 20,000 small firms are in line for visits from the taxman in 2012-13 following HMRC extending its small business records checks project.
FPB chief executive Phil Orford says, ‘Small businesses want to keep proper records but struggle with the significant administrative barriers that exist in the UK. They also want to pay their tax bills on time but the reality is that many firms are struggling with cash flow in extremely tough economic conditions – yet HMRC is being completely inflexible.
‘Entrepreneurs are crying out for a better tax regime that supports their ambitions and is conducive to growth, not one that provides constant hurdles to overcome and punishes them disproportionately. Operating such a strict, punitive small business records checks regime while effectively allowing large companies to do as they please is completely unfair.’
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