A greater education of tax obligations is needed amongst small businesses in the UK, following news that the HMRC could take a staggering £600 million from British firms, according to accounting software specialist Accountz.
 
Tens of thousands of SMB’s in the UK are living in fear of the taxman following news that HMRC agents will target 50,000 small businesses to check that their business records are meeting minimum reporting standards. If not, a fine of up to £3,000 will be issued, with the potential to raise an astonishing £600 million over the next four years.

Tax inspectors will start visiting companies later this year, checking till rolls, bank and credit card statements, as well as accounts to ensure that the owners are keeping a basic level of records.

This news has led to an outcry from small business owners, who have voiced concerns about the lack of detail being put forwarded by the HMRC as to how it would assess each business that is spot checked.

According to Quentin Pain, founder and chairman of Accountz the implications of a fine could prove a real unnecessary headache for small businesses: “The guidelines left by the HMRC are certainly hazy when it comes to the exact criteria they will use in order to conduct these spot checks.”

“Recent comments from the FSB around the proposed spot checks suggest that these fines could have serious implications on small firms resulting in crippling penalties. I have to agree with these comments and think the HMRC needs to help small businesses understand their tax obligations.”

Quentin concluded: “With this in mind it’s clear that bookkeeping can go right over the heads of business owners, and support not hindrance is needed.  Implementing an easy to use accounting solution will help SMB’s manage their finances and should keep the taxman away.”