Brexit & EconomyHMRCHMRC nets £3.3bn in underpaid VAT from SMEs

HMRC nets £3.3bn in underpaid VAT from SMEs

VAT is a key area of focus for HMRC, with further inquiries likely to follow, according to tax investigation insurance specialists PfP

HMRC has collected an additional £3.3bn from SMEs following inquiries into underpaid VAT over the past year, according to tax investigation insurance specialists PfP.

PfP said that the investigations had been carried out by two newly created teams at HMRC: the Individuals & Small Business Compliance unit, and the Wealthy & Mid-sized Business Compliance unit. The company said that VAT is a key area of focus for HMRC, with further inquiries are likely to follow.

Kevin Igoe, managing partner of PfP said: “VAT investigations into SMEs have proven incredibly rewarding for HMRC.

“The figure will be driven by a combination of carelessness, genuine error or misunderstanding, as well as deliberate and calculated underpayment.

“Whilst the vast majority of SMEs are compliant, the actions of a rogue few mean that HMRC is likely to look closely at the tax affairs of all over the coming months. Many innocent businessowners are likely to find themselves under close scrutiny as the Revenue looks to weed out any remaining underpayment.

“It is therefore paramount tax records and systems are in order. Any uncertainty over when and how much VAT should be paid should be cleared up via professional advice, or clarification from HMRC itself.”

 

Related Articles

Paradise Papers: The role of the accountant

HMRC Paradise Papers: The role of the accountant

2w Alia Shoaib, Reporter
How simple is Simple Assessment?

HMRC How simple is Simple Assessment?

2w Helen Thornley, ATT Technical Officer
HMRC victorious in £1.25bn VAT dispute with Littlewoods

HMRC HMRC victorious in £1.25bn VAT dispute with Littlewoods

3w Alia Shoaib, Reporter
HMRC ‘slow to act’ on VAT fraud, tougher stance needed for online marketplaces

HMRC HMRC ‘slow to act’ on VAT fraud, tougher stance needed for online marketplaces

1m Emma Smith, Managing Editor
HMRC probing Manchester United players over image rights tax dodges

HMRC HMRC probing Manchester United players over image rights tax dodges

3m Alia Shoaib, Reporter
Tax gap closes to record low

HMRC Tax gap closes to record low

4w Austin Clark, Reporter
Bumper year for HMRC as taxes on wealthy bite

HMRC Bumper year for HMRC as taxes on wealthy bite

1m Austin Clark, Reporter
HMRC triumphs over tax avoidance scheme expected to net £325m

HMRC HMRC triumphs over tax avoidance scheme expected to net £325m

1m Alia Shoaib, Reporter