Revenue's self-assessment policy hits small business

The Inland Revenue is discriminating against small businesses by denying them free information packs full of tips on how to help employees meet self-assessment obligations.

Grant Thornton said this week that the Revenue’s refusal to post information automatically on the new tax rules to firms with fewer than 100 employees ignores those businesses that most need tax help.

‘I know of no reason why they’re doing it,’ said self-assessment specialist Ian Johnson. ‘Maybe it’s to contain postage costs.’ But, he added, the Revenue’s position contradicted recent newspaper reports that it wanted to target its guidance at those businesses which needed it most.

‘My concern is that there are lots of smaller employers that are less able to look after themselves,’ said Johnson .

The Revenue refused to comment on the controversy, although it is known to believe that bigger firms are most likely to be affected by the P11D form requirements which could complicate self-assessment.

But Price Waterhouse tax partner John Whiting gave partial support to Grant Thornton’s claim. ‘Everybody should get information and small firms are the least likely to have the information to hand,’ he said.

‘I don’t fault the Revenue for what it has done, but I assume it would write to all employers and say that guidance is available if they want it,’ he added.