Small and medium sized businesses are an “easy target” and a significant area of HMRC’s cash drive activity, according to UHY Hacker Young.
The top 20 firm found via HMRC’s annual report and a freedom of information request that the extra tax yield from compliance investigations into small firms by HMRC had jumped 39% in the last year. On top of taxes already paid by these businesses HMRC took £434m in extra tax and fines in 2011/12, up from £311m in 2010/11.
Roy Maugham, tax partner at UHY Hacker Young, said in a press statement: “HMRC has been set a challenging tax yield target by the Chancellor, and small businesses have found that they are an easy target for HMRC’s crackdown.”
AccountingWEB got in touch with HMRC, who denied they were targeting small businesses.
About Robert Lovell
Business and finance journalist