Steve Collings outlines the areas of financial reporting most frequently picked up by HMRC for investigation.
My last article on HMRC 'hotspots' looked at five of the most commonly investigated areas and how HMRC's technical accountants assist inspectors during the course of an enquiry into a company tax return. Continuing from that, this piece will highlight some other aspects frequently assessed by HMRC in the area of financial reporting.
Directors' private expenditure
Situations can arise where a company will meet the cost of certain private items (this is particularly the case with clients in the SME sector) – in particular motor expenses such as road tax. Be careful with these because the bookkeeper may not be aware that such personal expe...