Heightened HM Revenue and Customs (HMRC) investigations into SME corporation tax raised almost 500 million more for the 2014 to 2015 financial year.
United Kingdom, April 26, 2016: Per the tax authority, UHY Hacker Young, investigations into soft target small businesses with a view towards the narrowing the corporation tax gap. This is more commonly known as the theoretical amount of tax that HMRC should recoup as compared to what has been retrieved in actuality.
Within the time span of 2013 to 2014, the corporation tax gap of SME has narrowed to 1.4 billion from 2.1 billion. This occurred as the same gap for large business service retained its standing at 1 billion during the same fiscal year. According to Roy Maughham, a UHY Hacker Young partner is seemingly aggressively targeting small businesses. It is perceived that such businesses that are simplistic pickings leaving the possibility of accelerating investigations within the upcoming year and beyond.
The closing of the tax gap for SMEs is substantial and the non-movement via larger companies is clear in demonstration of the heightened pressure via HRMC on the SMEs as a measure of filling the shortfall. With the increasing amount of smaller businesses being pursued, larger companies that include, Starbucks, Amazon as well as Facebook, are presumed to be getting away with disproportionately paying minute amounts of Corporation Tax.
The public is becoming increasingly frustrated, understandably, regarding the fact that larger companies are failing to contribute their proper share of Corporate Tax. This being done as SMEs are left to feel as if the lion’s share of the tax burden is falling on their shoulders is fervently coming under fire via HMRC. The nature of the investigations being executed by HMRC are highly unexpected and the subsequent tax bills tend to have a negative impact on short term flows of cash from smaller companies. This results in continual damage aimed at growth plans overall.
In order to avoid a tax investigation at the hands of HMRC, the optimal route is the employment of an accountant. This should be done first and foremost as a measure of ensuring that all aspects are being fervently adhered to. With the help of a qualified accountant, your company is able to ensure that all financial affairs are compliant as well as accurate in regards to the tax regime within the United Kingdom.
HRMC has no intention to relent on its investigations regarding Corporate Tax, therefore, it is in the best interest of all businesses to be in compliance. Especially for those that own small businesses, you will need to immediately discuss your corporation tax liabilities with a qualified accountant. Chartered Certified Accountants are more than capable of ensuring that your small business will remain (or become) compliant with the Corporate Tax laws within the United Kingdom. They are available to assist you via, online form, email or telephone at a variety of times that are convenient for most business schedules. In addition, their rates are suitable for the budgets associated with smaller businesses.