Starting a new business can be daunting and with HMRC there is a lot more emphasis on getting the information submitted to them through online applications instead of paper returns like it once was. These submissions have specific dates to be filed by as HMRC would impose fines on any late submissions of VAT, PAYE, Corporation Tax and Self Assessments, in which makes it absolutely imperative that these deadlines are not missed.
With COVID-19 grants available there will be a huge surge in checks via HMRC as they have had to make funding available in such short notice, and as with all grants and tax, HMRC puts the reliance on individuals to be honest with all cards on the table. If you are found to have committed any sort of tax evasion from understating earnings to claiming the offered grants unlawfully, then heavier fines will be imposed based on disclosure and can range from a fine of 10% to 100% of monies owed, also on top of that lost revenue.
HMRC computers are so advanced they are all integrated with all government departments so if you declare say a property to land registry, HMRC can flag this and check very easily. HMRC have greater powers than the police and can look into anything at all that is electronically stored, when any sort of check is made on your business you are completely innocent until proven guilty, which with correct record keeping is easy to prove.
Having first-hand experience working at HMRC, I realised it was apparent that the system is so complex that the general public can rarely understand the full depths of the tax system. Taking all this into consideration I started my Accountancy business as I knew I could put to use all that I had learnt about the tax system in the time working at HMRC to help other people and businesses to achieve an easy tax year.
When HMRC opens up a compliance check to an individual it can be quite scary, but as long as you have a good accountant that knows the system thoroughly, your mind will easily be put at ease. As a business I strive to make my clients comfortable and keep stress levels as low as possible by helping out with any tax issues and taking the stress out of being fully compliant to what is required to run a business.
