In a bid to cut costs on ‘drawn out and costly’ tax procedure inspections HMRC have promised to treat honest traders with a light touch. On the flip side they plan to throw the book out firms suspected of multiple taxes.
HMRC have stated that they want to avoid where multiple inspectors would make compliance visits in consecutive months. However, businesses deemed to be ‘high risk’ for underpayment will be firmly on HMRC’s radar and they would be automatically assessed for a full range of taxes.
“We want to get off the back of honest businesses,” said an HMRC spokesman.
Form June it will be testing the new procedures for a period of 6 months before rolling it out nationally in January 2012. David Gauke, Exchequer Secretary, said: “We know that agents, individuals and businesses find some of HMRC’s current compliance practices drawn out and costly. A single compliance process could help HMRC improve the customer experience and reduce costs.”
