HMRC has initiated a series of tax compliance investigations into small businesses, a north accountancy group has warned.
Goldwells, which has eight offices across north Scotland including Peterhead and Buckie, has assisted a growing number of clients with regard to tax investigations in recent weeks, and in particular seafarers and those who rent out properties through Airbnb.
The firm believes that in order to crack down on fraud, HMRC has initiated at least two centralised compliance projects which it hopes will bring funds back to the Treasury.
Goldwells managing director Gary Addison says that by using its significant legal powers HMRC has obtained details of Airbnb rental income since 2018, and this is being checked against tax returns filed (or not filed) by those renting out their property via the Airbnb website.
He adds that seafarers are also under the microscope as HMRC believes there has been a rise in fraudulent seafarer claims. Individual and small companies have been contacted with queries about their claims in order to check eligibility and amounts claimed.
By doing these investigations, Mr Addison says that officials hope to recover millions in additional tax, interest and penalties.
He said: “There have been numerous reports regarding fraudulent claims for the Government’s business support packages. It has been an expensive time for the Government and it now appears that as a result HMRC has begun a number of tax compliance programmes.
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“It can be concerning for businesses to receive a letter regarding a tax investigation and we are getting an increasing number of clients asking for help.”
Businesses should be wary of phone calls claiming to be HMRC, Mr Addison added: “At the same time, businesses have reported an increase in hoax emails and phone calls from individuals claiming to be from HMRC regarding tax investigations. It is important to note that HMRC will never make first contact by telephone or email, there will always be a physical letter.”
Any businesses who have received a letter regarding a tax investigation are advised to seek professional support, the firm’s tax investigation specialist Ewan Edwards, said: “Tax investigations can be complicated matters and this latest campaign will bring more stress for business owners who are already working hard to maintain their businesses during the pandemic.”
