We understand that HM Revenue & Customs (HMRC) are writing to thousands of businesses to discuss
their tax affairs.
The approach will start with 100 of the fastest growing small and medium-size enterprises (SMEs) in the UK, along with mid-sized businesses with a group structure.
HMRC estimates that almost £15 billion, or 44% of the £34 billion tax gap, is due to SMEs non-compliance. HMRC data suggests that much of this shortfall is caused by errors and failure to take reasonable care, as opposed to outright tax avoidance.
Whatever this is badged up as it is clearly another revenue raising exercise, so please watch out. Speak to your tax advisor if you are approached as part of this regime before engaging in discussions with HMRC.