One of the most difficult and distressing things to happen to a small business is an investigation from the revenue or the VAT authorities.
These investigations are expected to come more common as the government seeks to reduce the deficit and they find increasing evidence it brings in large additional amounts of tax.
How do they decide who to investigate?
They have refined the way they target businesses. Although they still use information from informers, specialist teams and items found when investigating other businesses they have a new weapon. They have built up a huge data base that has been compared to the data base of the British museum. They use this data base to identify businesses that produce profits that are out of step in comparison with those that are found in the average business. Each year they analyse more and more industries. Social media postings on the internet can help them to learn more about the lifestyle of taxpayers being targeted.
How can you avoid being targeted?
The first essential step is to be honest in your record keeping. However there is much more to do and we will explain what are the steps you should take.
Business and financial problems arise unepectedly and we will be happy to assist you . We enjoy solving problems.