Taxman trawling for firms’ accounts – warning

The Citizen is at the heart of the community
The Citizen is at the heart of the community

ADVISORS say small businesses could provide a happy hunting ground for tax inspectors.

The UK Business Advisors (UKBA) group says the taxman has a ‘view to implementing’ checks on some 200,000 small businesses from the middle of the year.

UKBA says the taxman anticipates raising an additional £600m in tax over four years – an average of £3,000 per company.

Richard Terhorst, specialist in the financial support arm of the UK Business Advisors said: “HMRC have found a new hunting ground - taxpayers whose records are poor. We strongly recommend that businesses with concerns about their records get in touch with us. We’ll give you a health check. It could save you a lot of grief and cost in the future.”

UKBA’s own research indicates some 40 per cent of small businesses have either inadequate or poor record keeping. Common problems include poor evidence of expenditure.

> Visit www.ukba.co.uk