When the taxman comes to call

We all know that times are tight, which means that HM Revenue & Customs (HMRC) is receiving lower tax income. Increasing tax revenue has now become high priority with HMRC and a wide number of measures are being used to achieve this.

The taxman wants to get his cheque quickly and a range of measures are now used to identify those who might be evading payment. The internet, third party information and scrutiny of local press reports are used to identify those who might be chancing their arm. Encouragement is given to report any suspicions of tax or benefit fraud online or by telephone.

There have been amnesties directed at particular professions - doctors, dentists, online traders, plumbers, electricians - to get them to come clean, and there have been more widely publicised campaigns for those with offshore income.

Certain trades are being targeted in the UK. Restaurants are particularly popular and a favourite ploy is to turn up at cashing up time and politely request to inspect the premises. Once they are in you cannot get them out!

Remember you don’t have to agree to an inspection unless HMRC holds tribunal approval. You can say it is not convenient and they are welcome to make an appointment to visit. Make sure your staff know this.

However, if you get that letter or visit, don’t bury your head in the sand and hope it will go away. It won’t. It is time to get professional advice and put things in order.