HMRC on the lookout.............

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HMRC on the lookout.............
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Downsizer Forum Index -> Small Business Questions, Ideas and Advice

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Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Tue May 06, 14 8:54 am Post subject:
The theory is you're supposed to declare everything, but, the taxman can, and often does, advise you not to bother below a certain level. I'm not sure this level is official, or fixed. But, a tax return is pretty simple to do without an accountant, and certainly without a solicitor, for small organisations.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Tue May 06, 14 9:01 am Post subject:

Nicky Colour it green wrote:

and little guys can't afford big solicitors

Then they should join a union, such as the FSB.

Nicky cigreen

Joined: 25 Jun 2007
Posts: 9715
Location: Devon, uk

Posted: Tue May 06, 14 9:17 am Post subject:

Nick wrote:

But, a tax return is pretty simple to do without an accountant, and certainly without a solicitor, for small organisations.

yes, tax return is simple - and HMRC are very helpful.

My point was they are likely to have better results targeting small businesses for inspection, because they wont (and don't) win against the big guns with their expensive lawyers, plus it is expensive.

Small businesses can be inspected within a day by one inspector - it's cheap and easy to do.

Last time I attended an inspection, in my capacity as bookkeeper/ wages clerk, he argued the vehicle owned by the company must be used for personal use some of the time. I argued back that everyone had their own cars and thus had no use for the company car. He conceded my point. He asked if the employees (2) received a christmas bonus. I admitted they got a bottle of wine and a turkey. He told me he hadn't heard that... and ignored it. He found a small mistake, we agreed to make amends in the next tax return, he was happy and left.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Tue May 06, 14 9:31 am Post subject:

Oh, you're right. And the first line of investigation is likely to be a phone call or letter, which is more likely to be dealt with by a small outfit, especially those that are a bit rubbish at dealing with tax, rather than those attempting to avoid.

Large corporations throw them to the admin side, and allow them a slow death, or progress, with accountants and legal sides.

Going after thousands of small businesses probably makes financial sense.

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