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Updates from the Clayton & Brewill team.
Restaurants and retailers on the radar for HMRC
Whilst we all may have our views on tax avoidance by global businesses, it seems that HMRC is firmly focused on targeting small retailers and restaurants that it feels may be underpaying on VAT or tax.
Since the 2013 Finance Act came into force last July, HMRC has been able to access a business's credit card and debit card sales records going back four years – and use specialist software to compare them to the company's VAT returns and income tax returns to spot any irregularities.
The Christmas and January sales are likely to provide a key focus for the initiative, which HMRC estimates may help it to recover up to £50m of revenue lost through tax and VAT evasion.
Find out more
Card transactions can give a crude picture of tax liability and software systems can sometimes make errors. If you are investigated by HMRC or would like some pre-emptive advice and analysis for your business, contact Doug Perry, Yvonne Jackson or Neil South at Clayton & Brewill or call us on 0115 950 3044.