HMRC have recently announced that one in ten small businesses in the UK are classed as under active investigation with respect to tax which is due from 2015-2016. This figure is rather alarming, but we imagine not even half as alarming as the knowledge that your business is under investigation from HMRC. A number of finance professionals, including chartered accountants in North Wales have provided advice for you, should your business currently be scrutinised by the taxman.

It’s good sense to keep invoices for sales and purchases, and generally considered sloppy housekeeping not to. Business expenses, while logged down and provable, as well as official bank records allow you to save time and be a little more efficient in responding to any tricky questions from the taxman. HMRC are well known to carry out compliance checks should they even suspect that something is not quite right – either figures appearing incorrect or even something unusual happens, such as large claims of VAT.

HMRC also telephone the business in question once they feel that something is wrong. HMRC will ask a series of questions in order to ascertain that a business is, or is not, meeting their legal responsibilities toward tax, and use the call in order to assess whether or not a business needs further action taken or not.  Should the taxman decide that a visit is warranted, they will arrange a time and a date and conduct an official compliance check which should take around two hours, and can result in penalties, fees, as well as an additional tax bill should it eventually be decided that a business is avoiding meeting their legal responsibility with regard to it.  

Of course, it doesn’t even have to get to the latter stages of an investigation for something like this to be absolutely terrifying for a small business owner. HMRC is a figure which is the subject of a lot of fear regardless of the size of your business, and (rightly so) those of smaller businesses may be terrified of the implications of a visit. Whether you’re at a stage of receiving the first telephone call or even awaiting the compliance visit, it helps to know that you have someone on your side and another set of eyes ensuring that you have nothing to worry about.

Give Salisburys a call today and inquire about their tax investigations service for peace of mind.