The latest HMRC figures show an estimated £33bn tax gap, this is the difference between the amount of tax that should, in theory, be paid to HMRC and what is actually paid.
From the total figure HMRC considers that smaller businesses are responsible for 41% or £13bn.
Interestingly, they are now saying that only 13% of this amount is due to tax avoidance, but that a whopping 45% is due to the failure to take reasonable care.
As a result, we can expect HMRC to increase their interest in SME’s and individuals to boost the tax take. Tax avoidance is unlikely to be the focus, HMRC will instead be coming down hard on basic, more routine errors.
HMRC do charge penalties for careless errors, with up to 30% of the tax due being possible for any unprompted disclosure.
For more information please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org