PIR Sustainable Construction Magazine - HMRC Announcement To Launch New Task Forces To Tackle Tax Dodgers

Commenting on the announcement by HMRC that it is launching new task forces to tackle tax dodgers starting with restaurants in the London area, Richard Godmon, tax partner at accountants Menzies LLP, said:

London, 13 May 2011 – “The announcement yesterday by HMRC that it’s launching new task forces to tackle tax dodgers starting with restaurants in the London area is clear evidence that it is turning the heat up on its plans to raise an extra £600m from small businesses over the next four years.

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“Businesses which are big cash generators, such as restaurants, are an easy target for HMRC and so they need to ensure that their accounting records are kept up-to-date and stand the test of rigorous scrutiny. HMRC will use its powers to charge penalties of as much as £3,000 a time for offenders.

“Penalty charges for poor record keeping have historically been rare, what we see here is a very different approach. The scale of this should not be underestimated. Penalties will not be the end of the matter and many formal tax enquiries are expected in the wake of this regime which will be very time consuming and potentially expensive for offenders. Companies should consider taking out an insurance policy to cover the costs of professional advice to help with an HMRC enquiry.”