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Sunday
May092010

Revenue & Customs Inquiries into Corporation and Other Taxes are Not as Profitable as Some People

Most people are aware that as a self employed or small business owner you are liable to be audited or investigated at some point.  This ensures you are paying the correct amount of tax and you are not trying to get out of paying whatever is due to HMRC.

But I have read a number of recent reports with interest, as they suggest these inquiries are not producing the level of results some may previously have thought.  I know it is important to ensure that Revenue & Customs brings in all the money that is due to it, but this takes time and money.  The last tax year produced £359 million of revenues from small businesses that would not otherwise have been collected, as a direct result of these investigations.

I wonder whether HMRC is a little too eager to investigate some small businesses.  One key area for exploration concerns Corporation Tax.  Larger companies do generally produce larger returns by way of Corporation and other taxes when HMRC gets involved to try and reap in what it is owed.  But the figures show that smaller companies are not as profitable for them to explore as some may believe.  Compare the £359 million mentioned above to the £12.6 billion collected in Corporation Tax which was brought in over a four year period.

Regardless of the size of your business you may want to consult with expert advisers on the subject of Corporation Tax.  Should this be the case, please contact St Matthew now and make arrangements to speak to someone.

 



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