A warning has been issued to accountants that HM Revenue & Customs is hiring temporary staff in the upcoming weeks, to help in the collection of unpaid tax. Over 1,000 temps will be employed to look at the tax returns from previous years, trying to collect unpaid tax. This is another sign that HMRC is serious about collecting monies owed.
HMRC was branded incompetent in 2010, when problems with National PAYE Service resulted in millions of tax codes being issued in error. In September 2010, HMRC issued tax demands to over a million people demanding more than £3.8 billion in unpaid tax. Many of the smaller amounts of tax outstanding were written off, giving priority to chasing larger amounts of tax owed.
According to one accountancy, HMRC has even made phone calls to clients on a Sunday, demanding payment of tax not owed. A common worry among accountants is that temporary workers may not be trained to a suitable level, causing more damage in the long term.
A small business, whether a sole trader or limited company, will benefit from a low cost accountants to ensure that all tax is paid promptly, therefore avoiding penalties. The government is cutting red tape for business, which will take time to implement. Until all new legislation or revised guidance is in place, your business will benefit from outsourcing to a small business accountancy. Online accountancy will allow you to submit real time documents and information, providing real time information for your business, keeping you aware of monies owing.
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Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.