Newsletter Autumn 2012

Is a taskforce coming your way?

HMRC taskforces are teams of investigators who target particular trades in defined parts of the country with one-to-one visits. A typical team contains specialists to cover each tax the business pays (VAT, PAYE, corporation or income tax), and a computer expert to help access computerised business records or the shop till.

Trades selected for investigation so far have included scrap-metal dealers, car dealers, market traders, taxi firms, restaurants, builders, hairdressers, pubs and night-clubs. Most of these businesses tend to receive significant income in cash, or pay cash for goods. Cash creates the opportunity and the temptation to leave something out of the records, and HMRC have a cynical view of cash-based businesses.

However, the taskforce teams have recently turned their attention to non-cash areas such as private landlords who may not be declaring their rental income, and lawyers in the London area.

The taskforce team will normally make an appointment to visit the business, rather than just turning up unannounced. If you receive such a request from HMRC, please inform us immediately. We will speak to the HMRC officer concerned to establish the purpose of the visit. This conversation may be enough to limit the scope of the investigation, or cancel it altogether. For example if we can confirm that all your staff are paid through PAYE, give the PAYE scheme reference number and the amount of tax paid in the previous tax year, the PAYE specialist might stay at home.