New Compliance Powers at HMRC

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HMRC Compliance

For business owners the emphasis is again on adequate record keeping; a pilot compliance exercise looking at business records has been halted for review, but this is an area HMRC is likely to concentrate on in the future.

This is particularly important for businesses accepting or making payments in cash. HMRC is also employing ‘hit squads’ who concentrate on a particular business area in one town or city, for example fish and chip shops in Manchester. The arrival of one of these special teams will mean that every aspect of the business is examined in detail. The fact that these initiatives have raised substantial amounts of tax and national insurance mean they are likely to be a permanent feature of tax compliance work.