Are you “low hanging fruit” for HMRC?

Thu, 06/27/2019 - 16:13 |

The Real Business Club

As tax experts we are curious about your view…

Dawn works with many clients and resolves issues with tax and HMRC on almost a daily basis! This includes issues between sub contractors and contractors. Sub contractors sometimes get “the mucky end of the stick” when HMRC want information or think there is a route to uncovering fraud. The playing field can seem very sloping!

Any of this can have a big impact on sub contractors;

on stress levels; on time consuming enquiries and on income and cashflow.

We thought it good to share some up to date research into how smaller businesses view HMRC.

If you want to make sure you are not low hanging fruit talk to Dawn.

Small businesses don’t see UK tax system as level playing field 

The British Chambers of Commerce recently conducted a survey of firms across the UK.

The findings largely signal concerns over how HMRC applies the tax rules to different types of firms. 

Two-thirds (67%) of respondents don’t believe that HMRC applies tax rules fairly across all sizes of business. Micro firms are more likely to have that view (70%) compared to their medium and large counterparts (59%). 

The results also found concerns over the quality of service provided by HMRC. One in two (49%) firms don’t believe HMRC provides the support they need to be compliant. This figure is higher for micro firms (51%), compared to medium and larger firms (42%). Many respondents expressed frustration that HMRC underestimated the time and money their small businesses spent trying to keep pace with regulatory burdens and the complexities of the system. 

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“These results reflect a strong impression among businesses that the current UK tax regime isn’t a level playing field.

“When it comes to compliance there is a tendency for HMRC to see smaller businesses as low hanging fruit and as a consequence they feel under the constant threat of being called out for getting things wrong in a tax system that has grown ever more complex. In contrast, action to tackle persistent compliance issues among a small minority of firms remains frustratingly slow. 

“There is also widespread disappointment over the escalating burden of up-front taxes and costs of doing business in the UK, particularly at this time of heightened uncertainty. This has proved to be tipping point for many smaller firms who typically operate on a tight cashflow.

Make sure the playing field is set right for you!

Improve YOUR business finances

If you want to build your business and reduce your stress levels then talk to us!

We get alongside business owners and their staff, take the fear and pain out and release owners to do what they want to do.

Contact Dawn Edwards on 07896 665104. Dawn – leads our team delivering common sense clever finance services.

“Your business finances - not just a once a year relationship”