In 2011-12 HMRC raised £434m in taxes and fines from investigations into SME’s, that’s up 39% from £311m in the previous year.
HMRC initiatives such as task forces have played a key role
Small businesses are much more likely to make innocent errors than larger businesses.
Organisations such as the FSB now offer protection to their members and their website states:
HMRC can investigate a business at any time, even years after it has closed. On average, an investigation takes around 16 months.
If you thought HMRC only targeted big businesses, think again. In 2011, 33% of the HMRC enquiries handled for members related to business with a turnover of under £150,000 and 71% of these had a declared profit of under £25,000.
Membership of the FSB give you immediate professional support and essential protection for tax matters.
SME’s can also buy insurance from their brokers.
Should SME’s be given more help and guidance rather than insurance and penalties?