Accountant's Warning On Tax Enquiries

Bradford accountancy firm Watson Buckle is warning businesses and individuals to be aware of the increasing number of investigations by HM Revenue and Customs (HMRC), as the department attempts to crack down on tax avoidance.

Tax partner John Kinsella said the number of enquiries conducted by HMRC had risen significantly in recent years, and with the current economic climate putting more pressure on the Government to raise extra funds, this was likely to increase further over the coming months.

He added that while it was not unheard of for HMRC to carry out enquiries at random, it was more likely that a company or individual would be selected if they had attracted the departments attention in some way. He also said while it was possible to minimise the risk of an enquiry, it was important that anyone who was chosen dealt with the situation promptly and honestly.

He said: Taxpayers who meet deadlines for tax returns, maintain accurate record-keeping systems and do not take part in any unusual transactions would normally be less likely to arouse HMRCs suspicion.

Nonetheless, anyone who is chosen should keep calm and while they must of course be completely truthful, they should also take professional advice to ensure they do not pay any more tax than is necessary. It is important to give HMRC only the information they ask for and nothing else, though do not try to hide anything, or leave something out assuming they already know about it, as the penalties for not disclosing information are severe.

It is also good practice, if extra tax liability is likely, to help HMRC to devise the figure after all theyre going to work it out anyway and make an early payment on account in anticipation of the tax bill. HMRC will take this as a sign of willingness to co-operate, which will help to keep the level of any penalty down.

About the Author:
For more information, contact Watson Buckle on 01274 516700 or visit www.watsonbuckle.co.uk.

Article Originally Published On: http://www.articlesnatch.com

Tags: accountants accountancy bradford tax enquiries HMRC

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