HMRC collected an additional £470 million in tax as a result of inquiries into small and medium-sized businesses last year, according to data collected by UHY Hacker Young. At the same time, the additional tax collected from inquiries into large firms fell by 13%, from £4 billion to £3.5 billion. UHY Hacker Young believes inquiries into the tax affairs of small firms could increase as HMRC refocuses investigations away from large firms to smaller firms which are considered an easier target.

Roy Maugham, Tax Partner at UHY Hacker Young, said: "As well as being more likely for SMEs to make a mistake when it comes to their taxes, they are also less likely to effectively negotiate if they disagree with HMRC’s demands, as they will feel out of their depth and fear arguing with the taxman will lead to substantial costs and protracted disruption."

For further information, go to:
http://www.accountancyage.com/2016/03/29/hmrc-ups-tax-take-from-smes-by-470m-last-year/