Taxman Launches an attack on Farms and Small Rural Businesses
HMRC has unveiled plans to target small and medium sized businesses (SMEs) keeping inaccurate trading records. The initiative to investigate and penalise up to 50,000 SMEs a year, which would include many farms and rural businesses, could bring in up to £600m in fines for the government.
Initial plans see the HMRC examining full sets of business records – including cheque stubs, till rolls, sales and takings records and bank and credit card statements among other things – dating back over the last six years. The penalty imposed for records that are deemed not to be ‘accurate’ or ‘adequate’ would be up to £3,000. This clampdown may see SMEs being exposed to formal tax enquiries too.
Andrew Arnott, a partner of Saffery Champness Landed Estates & Rural Business Group, comments “HMRC’s proposals could put yet more burdens on farms, estates and small rural businesses. Any plan to investigate the financial records of SMEs is an ominous sign at a time when rural businesses are already under great pressure in a fragile economy. This is an interesting shift of focus for the taxman as, historically, fines for poor record-keeping have been very rare.
“Businesses however should take note and ensure that financial records are accurate and up to date, seeking expert advice if necessary. This will ensure that you avoid penalties and fines, and will also help you to keep a better gauge of your financial well-being as you navigate through turbulent economic times.”
For further information, please contact:
Andrew Arnott (Saffery Champness London): 020 7841 4000 andrew.arnott@saffery.com or
John Vaughan, John Vaughan & Co. Public Relations: 07596106937 jvaughan@johnvaughan.co.uk
