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

Feel Good Friday: Quilter pledges £3m towards financial education

Feel Good Friday: Quilter pledges £3m towards financial education

Alongside £1m in grants supporting charities

Professional Adviser
clock 13 February 2026 • 1 min read
Brits unlikely to see IFAs despite Budget impact

Brits unlikely to see IFAs despite Budget impact

Just 19% were likely to seek advice, Continuum finds

Isabel Baxter
clock 12 February 2026 • 3 min read
Treasury consults on AR regime adding further FCA and FOS permissions

Treasury consults on AR regime adding further FCA and FOS permissions

Amid concerns about consumer harm and weaknesses in oversight

Isabel Baxter
clock 12 February 2026 • 3 min read