Size doesn’t matter.
Whether you are a large, medium or small business, at some point HMRC is likely to open a Tax Investigation . You don’t even need to be in business. HMRC is equally happy investigating individuals, rich or poor, if it believes more tax is due.
During the last financial year, HMRC delivered £28.9bn from challenging accounts and tax returns, including: £8.0bn from the UK’s 2,100 largest businesses, with around half of them under enquiry at any one time & £3.3bn from the 170,000 businesses who are classed as medium in size, with a turnover between £10m and £200m & £5.0bn from the biggest group of all, the 5m small and micro businesses HMRC targets small and micro businesses the hardest because it believes this group is responsible for £15.8bn of the UK’s tax gap, by not taking enough reasonable care with their record keeping and making too many mistakes.
Then there are individuals. There are 10m people within self-assessment, including the 8,500 wealthiest people in our society. £3.5bn was collected in compliance revenue during 2016/17 from this sector, with rental income and capital gains tax related investigations especially common. HMRC’s number one objective is to maximise the revenue it collects from tax investigations and is currently bringing in an extra £10.3bn a year compared to just five short years ago. The figures don’t lie. Every business is a potential target, with individuals in HMRC’s firing line as well.
Subscribing to our Tax Investigations Service will at least give you some reassurance and security to know your professional fees will be covered in the unfortunate event of a tax enquiry.