Taxman targets 50,000 SMEs in tax avoidance crackdown

clock

Tens of thousands of small businesses could be fined by the taxman in the New Year for failing to keep proper tax records.

Under a HM Revenue & Customs consultation, the taxman wants to delve into 50,000 of the two million SMEs it believes have poor record-keeping which has led to unpaid tax. The Business Records Checks consultation could see fines of up to £3,000 for those HMRC finds have unpaid tax liabilities through poor book-keeping, IFAonline's sister title Accountancy Age reports. HMRC's aim is to improve book-keeping in 40% of the 4.9m SME community where records have been found wanting. The 2008 Finance Act gave HMRC the power to investigate up to 50,000 business records, beginning in the seco...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Why advisers shouldn't rush into private markets

Why advisers shouldn't rush into private markets

'There's only so long the hamster wheel can keep turning'

Justin Cash
clock 15 December 2025 • 4 min read
Adviser workload set to rocket ahead of IHT on pensions changes

Adviser workload set to rocket ahead of IHT on pensions changes

Large volumes of clients will need reviews of financial plans

Isabel Baxter
clock 15 December 2025 • 3 min read
Advising silver splitters: Legal insight for older clients getting a divorce

Advising silver splitters: Legal insight for older clients getting a divorce

Why is divorce becoming more common in older clients?

Katharine Bundell
clock 15 December 2025 • 4 min read