Small businesses feel penalised by "intensive" HMRC investigations
Posted on in Business News , Cycles News , Creative News, Outdoor News
Research commissioned by HMRC showed that over half of small businesses find HMRC investigations too intensive and disruptive.
The research showed that 52% of small businesses find HMRC tax investigations to be too intensive, and 56% said they did not believe that HMRC attempted to minimise disruptions caused by the cost, time and effort required by the inquires.
In April 2018, the Treasury select committee heard that 1 in 10 small businesses are under tax investigation at any given time.
These investigations form a part of HMRC's efforts to clamp down on tax avoidance, as the authority believes that small businesses were responsible for 41% of the tax gap in the 2016/17 tax year.
However the research also said that 48% of businesses do not believe HMRC's penalties are fairly distributed, and that smaller businesses are unfairly targeted.
On average, a comprehensive HMRC tax investigation lasts around 16 months, causing disruption and lost time and money for hard-working entrepreneurs.
The best route to avoid an HMRC enquiry would be to employ an accountant to properly take care of everything, but you could still be investigated. Even if your business is successful in defending itself against a tax investigation, you will be responsible for covering any costs or losses incurred during the investigation from HMRC.
To protect your business, every paying ActSmart subscriber has free tax investigation protection, to cover these cost - a service which many businesses pay c.£150 for through their accountant.
ActSmart subscriptions are available from just £30 per annum and give you access to tax investigation protection, card processing services, 24/7 legal helplines, consumer promotion, online employment manual and general business support all year round.
Join today or contact us to find out more.