Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

According to Roy Maugham from UHY Hacker Young accountancy, a large number of UK businesses will relocate overseas in countries that include Switzerland, Ireland and Malta. In addition to the high taxes charged in the UK, businesses also have to face an increasingly aggressive approach to tax compliance.

In recent years, the amount of tax collected through increased compliance work and investigation has risen steadily, with this year seeing the highest tax yield. Using the extra government funding, HM Revenue & Customs has collected £16.5 billion in the last year, through concentrated investigation of tax evasion and avoidance. The previous year resulted in £12 billion being collected, which shows that HMRC is using a “more aggressive approach” to compliance.

According to Maugham, businesses have been affected most with Corporation Tax investigations contributing 24 percent of the total collected. VAT compliance has been the most effective campaign for HMRC, with the tax yield increasing from £3.2 billion to £6.2 billion during the last year. Maugham said:

“The reality is that much of the money that HMRC collects from compliance work is from businesses that feel intimidated into settling with HMRC, or it is from litigation where HMRC is able to outspend a less well-resourced small or medium sized company.”

Maugham warned that as the UK became a much less attractive home for businesses, they would relocate and that would result in far greater losses to the Treasury than the short term gains from increased compliance.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.