Even if your taxes are all up to date, and you have dotted all the ‘i’s’ and crossed all the ‘t’s’ it is still a very real possibility that your business could become subject to a tax investigation. That is because in 2017 HMRC introduced a new system called “Connect” - a state of the art and very helpful tool in identifying those who try to evade paying their taxes. This system is now the catalyst for about nine in ten investigations that HMRC undertake.
Almost anyone can come under investigation. That is why at National Accountants have devised a fixed and very competitive investigation package that can offer very comprehensive protection against any costs that you incur in accountancy fees in relation to any investigation you might face.
Almost 95% of all companies in the UK are what would be termed as small businesses and between them they employ almost 15 million people. HMRC reduced its compliance spend by some thirty five million but despite that, the yield in tax from those small business saw an increase of over two hundred million to around five and a half billion pounds.
This range of business yielded four billion in tax which was up fourteen per cent in the years 2018/19. For business at the top end of the range in this group, any investigation by HMRC is likely to be carried out by very well trained teams who will spend long periods of time on site and whose investigations will be pricey and will take a lot of time.
Where large business is concerned, they have generated an extra ten billion pounds in yield for HMRC. The Revenue spent an extra twenty five million pounds on compliance related work in 2018 to 2019 and that yielded them one billion pounds in extra tax payments an impressive return of forty pounds for each extra one pound spent by HMRC on compliance.
This group yielded £2.4bn from taxpayers in the bracket of less than £150,000 annual income and who had under £1m in total assets.
This higher echelon group produced a yield of £1.8bn after an estimated £145m spend by HMRC on compliance. That is an eighty per cent increase in the tax that was generated for only a 7.5% spend.
It is not possible to stop HMRC raising an investigation, but our comprehensive tax investigations service will offer you the following: