The Tax Man is getting tougher, says BDO

NORTH West businesses could find themsleves at the receiving end of a tough new stance by HM Revenue & Customs, according to the accountancy firm BDO.

Revisions to the tax system detailed in Chancellor Alistair Darling’s Pre-Budget Report are designed to increase Government revenue but could penalise hard-pressed businesses, said BDO tax partner Ed Dwan.

Mr Dwan has identified moves to demand payment prior to an appeal decision by a tax tribunal and to increase the number of investigation conducted by HMRC.

He said: “Historically, HMRC have often agreed to postpone tax payments in disputes whilst the parties await the final outcome. The new approach appears to be an alignment with the more aggressive VAT system where the general rule is that outstanding VAT is paid upfront.”

He added: “Standard practice has seen HMRC maintain strong focus on systems and processes and working with businesses to ensure full compliance and diligence. Now HMRC intends to increase the number of checks to identify failure to take reasonable care – and will penalise those who fall short.”