HM Revenue & Customs (HMRC) now have an increased number of trained investigation specialists who are using the latest technology including HMRC’s Connect System to maximise tax revenues – and anyone can be selected – no one is immune!
We are aware that:
- HMRC’s own published targets are to recoup an extra £5 billion per year, each year between 2016/17 and 2019/20 from tax investigations.
- There is an estimated £33bn gap between what HMRC should collect, and what it does collect. Of that, £17.5bn is attributed to Small Businesses (£14.1 bn) and Individuals (£3.4bn).
- HMRC’s approach is increasingly “broad brush” – often co-ordinating multiple investigations in particular business sectors, trades or circumstances, using specialist teams.
- HMRC’s access to data continues to improve, both in terms of levels of data available and speed of access, meaning increased capability to identify investigation targets.
Aside from any penalties received for failing to pay tax, the process can be expensive, time-consuming and stressful, not to mention a significant distraction from the business.
Here at Magma we have a depth of tax knowledge and practical expertise including handling HMRC enquiries. If you would like to discuss your own situation call one of our tax specialists on Rugby 01788 539000 or Leicester 0116 261 0061.