Taxman targets 50,000 SMEs in tax avoidance crackdown

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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...

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