TaxPersonal TaxNew Revenue probe unfair, says ACCA

New Revenue probe unfair, says ACCA

The Inland Revenue has been accused of unjustifiably targetting micro businesses with turnovers of £15,000 or less for investigation.

ACCA claims the businesses are unfairly targetted because the Revenue is using their self assessment forms – which only require a three line statement of profit, net profit and expenses – as a guide to who should be investigated.

ACCA’s head of tax, Chas Roy-Chowdhury, said such small business would not have the resources to deal with an investigation.

‘The Government should take action now and tell the Inland Revenue to stop stifling small scale enterprise and instead devote its resources to seeking out individuals and businesses who do not even register for tax,’ he said.

Meanwhile the Revenue confirmed it had begun ‘a trial’ to improve compliance among micro businesses after noticing an unexpected rise in the number of accounts filed at or below the Pounds 15,000 level.

An unknown number of small companies have been sent letters with varying degrees of warning ranging from a statment that their accounts will be reviewed to an invitation to check whether their turnover really is so small.

‘We know the variety of things that will help people comply and we know that there’s a particular risk with accounts that come in under Pounds 15,000,’said a Revenue spokesperson.

Links

Inland Revenue online

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