Posts Tagged ‘HMRC investigations’

New HMRC taskforces launched

Posted on: June 29th, 2012 by LeightonReed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

HMRC won’t be taking a break over festivities this summer; it is instead launching new taskforces in the hope of recovering up to £30 million from traders who are paying the incorrect amount of tax.

Its taskforce programme specifically targets those they deem as ‘high risk’ sectors and areas of the country. The aim of taskforces is to end tax evasion among SMEs, by focusing on a ‘high-risk’ trade, where cash in hand transactions are common.

The specialist teams will investigate businesses with powers allowing them to carry out spot checks and examine business records. The latest scheme will particularly focus on:

  • Indoor and outdoor market traders in London
  • The motor industry in South Wales, Yorkshire, Nottinghamshire and the North East
  • Scottish pubs and clubs
  • Hairdressers and beauticians in Northern Ireland
  • Taxi firms in Yorkshire and East Midlands
  • Property landlords in East Anglia, London, Yorkshire
  • Restaurants owners in the Midlands, South West and South Wales.

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HMRC visits: Trouble in store?

Posted on: May 24th, 2012 by LeightonReed No Comments

 

Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Many businesses dread a visit from HMRC.  There is always the worry that something may come out results in paying more tax but there is also an understandable sense of dread at the potential disruption it could cause in the run up to the visit, during the visit and even following the visit.   However, there are a number of things you can do to make the experience far less stressful.

Preparation    

  • Most HMRC visits are pre arranged either by telephone or letter – If the appointment is made by telephone, ask the officer to confirm in writing the details of the visit – not only date and time but the expected length of the visit.
  • Ask for confirmation of who will be coming, what their roles are in the enquiry overall and exactly what records if any they want to see.
  • Ask at the outset are there any particular risk areas they have identified in selecting you for an inspection.
  • Have all of the requested records ready for the visit.
  • If they are to be left in a room make sure it is clean and only has the information requested in it.
  • Of course it may not be possible to prepare in advance if HMRC don’t give warning of a visit.

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Tax enquiry service success!

Posted on: March 23rd, 2012 by MarkJones No Comments

We have just successfully concluded a lengthy tax enquiry which did not cost our client a penny in fees!

Having subscribed to our low cost tax investigation service all the bills were met on their behalf. This enabled us to defend our client without them having to worry about how much it was costing them.

Often a client will give in because costs are an important factor in enquiry cases which can run for months and even years. Our clients are often unaware of the complexities of running an enquiry with many hours being spent on researching tax statutes and tax cases for precedents which support our clients’ case.  The average cost is in the region of £5,000  for a full enquiry case so the annual premium is a very good investment.

Our clients are delighted with the result we have achieved and even happier that they did not have to pay for it!

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HMRC announces plans to extend investigations into tax evasion

Posted on: February 17th, 2012 by LeightonReed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

New campaigns will focus on builders, direct selling and at people who fail to make tax returns and who are liable to pay tax at the highest tax rates. These campaigns will be launched by 31 March 2012.

In two further campaigns, to be launched later in the year, the department will target tradespeople working in the home improvement market, and people who receive income from buying and selling goods direct to others, or are paid commission.

HMRC will use new technology to search the internet for information about specified, targeted people and businesses.

The new campaigns will focus on:

  • Missing returns. This will contribute to wider HMRC activity tackling failure to complete tax returns. It will initially focus on those who fail to complete tax returns and who are liable to pay tax at the highest rates.

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HMRC increase business investigations – are you covered?

Posted on: February 9th, 2012 by LeightonReed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

The current state of the UK economy has put significant pressure on HMRC to recover additional tax revenue in order to help them meet the growing deficit in the economy. Obviously, one way to achieve this goal is by carrying out additional enquiries into Tax Returns. Enquiries can be more complex than in the past and the costs of responding are consequently higher. The government have announced that they will be investing £900 million into HMRC over the next 4 years to clamp down on people and businesses who underpay their taxes. They have also suggested that they will be increasing Tax Investigations by 3000%, as a main spearhead to their new strategy. So it is increasingly important for clients to obtain protection against those costs.

We do have considerable expertise in defending clients under enquiry by HMRC and always ensure Returns are filed in a manner that should limit the possibility of an enquiry by HMRC. However HMRC select thousands of cases a year for random enquiries. If you are selected for a tax enquiry we will naturally aim to settle it quickly and minimise the final tax liabilities. However, answering all of HMRC’s questions takes time and the enquiry could take several months. As a result the costs to defend you can be significant.

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HMRC programme to improve record-keeping among SMEs

Posted on: January 10th, 2011 by LeightonReed
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

HMRC has recently announced their intention to introduce a programme of checking business records and is consulting on how to go about this. The consultation document Business Record Checks was published on 17 December and the deadline for responding is 28 February 2011.

HMRC says that these checks will review both the adequacy and accuracy of business records within the SME sector. HMRC is not proposing any new legislation as the programme will use existing law regarding both record-keeping requirements and penalties for failure to comply with those requirements.

HMRC will check business records in up to 50,000 cases annually; beginning in the second half of 2011, the consultation is merely to discuss how this is implemented. There will be penalties for ‘significant’ record-keeping failures, on the basis of risk assessment, and the aim is to bring about an improvement in record-keeping across the SME population and thus reduce tax losses that result from poor business records. Current penalties for record-keeping failures of up to £3,000 can be levied and there is no indication that this would be altered for these checks.

Many of our clients should have little to fear as they operate full accounting systems. It is those businesses where the accounting systems are not in place which face the greatest risk of exposure to penalties.

We will continue to update our clients throughout this process and will give guidance on responses and subsequent interventions whilst offering health checks and HMRC Enquiry service.