Stay out of the firing line

Jul 24, 2012 | Uncategorized

Shropshire business owners should be prepared as the taxman plans to target 30 new industry sectors in the latest crackdown.

Martyn Bramwell, who is the tax manager at Dyke Yaxley Chartered Accountants in Shrewsbury, said the taxman had achieved great success after creating 11 task forces last year.

“After such positive results bringing in extra tax, the taxman is now planning a further 30 new task forces and it has not yet been officially revealed which industry sectors will be targeted.”

“It has been suggested that the motor trade and the clothing industry will be first in line, but all business owners should prepare themselves just in case.”

Martyn said the task forces had been successful because unlike normal tax enquiries, which usually focus on a single type of tax such as Corporation Tax, task forces carry out a top-to-bottom investigation of a company covering everything from VAT to National Insurance.

“Task forces concentrate mainly on investigating the accounts and tax returns of businesses, but they will also look at any transactions between directors and their companies.”

“And if your company books show an expenses payment to a director which appears to have been dealt with incorrectly, the task force will also look into your personal tax return.”

But Martyn said companies would reduce their risk of facing a tax investigation by ensuring their tax affairs were up-to-date.

“The taxman can’t possibly investigate every company in an industry sector, so he will focus on companies who show obvious signs of not complying with tax rules, like any business whose tax return is overdue.”

“So you can help keep your company out of the firing line – just make sure your paperwork is completed on time.”

Dyke Yaxley’s Martyn Bramwell

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