Many small and medium-sized business owners sweat this time of year; a tax return is on the horizon and there’s a nagging concern that HMRC are ready to pounce.
Well, there’s one way to get through the holiday period – and life in general – without worrying about investigation from HMRC: Leave the worry to us!
Here’s our 5 top tips for avoiding an HMRC investigation in 2018.
5 Ways to Avoid an HMRC Investigation
1. Use a professional accountant and be certain that your tax returns are filed accurately and on time. In doing so, you’ll also ensure you’re claiming each and every expense that you’re entitled to claim.
2. As tempting as it might be to try just about anything to lower your tax liabilities, there are rules and regulations for a reason. Don’t try to skirt those rules or lie on your return; make sure the information you share with HMRC is up-to-date and correct.
3. While tax avoidance is legal, tax evasion is not. To that end, do not try and ‘beat the system’. HMRC have significant and far-reaching powers to punish tax evaders – it’s just not worth the hassle.
And if you’re ever approached by a tax avoidance scheme, make sure you seek professional advice from a third party. Heed the warning of the multitude of celebrities to have hit the news in the past 12 months with burnt fingers and dented bank accounts thanks to their involvement in questionable tax avoidance schemes. If it sounds overly complex or too good to be true, get a second opinion.
4. Don’t hold anything back when making a claim. Supporting information to clarify a particular expense or an unusual data point should clarify matters for HMRC there and then, saving them from starting an investigation. After all, they’re on the lookout for anomalies and suspicious activity; a good, clear, honest explanation ought to keep them at bay.
5. Finally, you need to be aware that HMRC are very savvy, and loose lips on social media can often prompt a second look by HMRC inspectors. With that in mind, be careful with the information you share online regarding sales or profits; if it doesn’t match up with what’s on your tax return, you could be kicking off the new business year with an enquiry.
Pay Less Tax (Within the Rules)
By placing your tax affairs in the right hands, you’ll never have to worry about HMRC again. And that’s precisely what we help our clients achieve via one of our Super 6 services: Pay Less Tax.
We can help you claim every allowance you’re entitled to, and only pay the level of tax you need to; never a penny more.
Contact us today to speak with one of our friendly advisors to get started.