Business tax issues
If you are a business owner, there will be a unique set of tax concerns that you will need to consider. You will need to ensure that your personal income is correctly declared, that your employees and contractors are taxed correctly, and that accurate accounting records are maintained at all times.
If you do run into difficulties, our team are experienced in resolving a wide range of business taxation issues. Whether HM Revenue & Customs (HMRC) have contacted you with an enquiry, or if you have identified a mistake yourself, we can advise on the best course of action.
Examples of the types of matters we regularly help taxpayers resolve include:
Employed or self employed status
As an employer, it is your responsibility to ensure that your staff’s employment status is accurate. There can sometimes be confusion as to whether an individual qualifies as employed or self employed, which in turn can result in uncertainty over who is liable for payment of taxes such as PAYE and NIC.
Buying or selling a business
Whether you are looking to sell your own business or purchase another, you should be wary of hidden tax issues. Common scenarios can include:
- sales which have not been recorded in the books and records
- employees who have received benefits in kind which have gone unreported to HMRC
- wages and benefits in kind to family members who have never worked for the company
- offshore tax structures in the balance sheet, such as EBTs
Such matters should be resolved with HMRC prior to a sale to ensure that the buyer does not inherit a potentially costly tax problem.
Maintaining Accurate Records
HMRC can investigate a taxpayer at any time and go back up to 20 years. It is therefore vital that accurate accounting records are maintained, and that no data is corrupted in the event of a software upgrade.
HMRC are increasingly looking at accounting systems and software and testing them for reliability. Various software packages are regularly being used to interrogate accounting software to ensure past tax compliance for both direct and indirect taxes.
What should you do if you have a problem?
If you encounter a tax problem within your business, seek professional advice immediately.
If you wish to discuss this or any other matter with a member of the team, please contact us.