HMRC investigation could have an impact on construction firms, says PwC
HM Revenue & Customs’ plans to carry out a programme of tax compliance inspections on businesses in the West Midlands construction sector could have an impact on local firms, it is claimed.
This new task force is part of a HMRC initiative that focuses resources on reviewing the tax affairs of the specific sectors and regions it deems to be at high risk of tax evasion and fraud.
David Francis, tax dispute resolution manager at PwC in Midlands, said the move would impact on businesses in the region’s construction sector:
“This new tax task force will bring together various HMRC compliance and enforcement teams for intensive bursts of activity targeted at the Midlands’ construction sector. It will cover all types of taxes including corporation tax, income tax, VAT and PAYE, and HMRC expects to recover around £2.5m of additional tax and penalties as a result,” he said.
“While reviews like this can be complex for the businesses involved, they can also offer an opportunity for companies to get certainty about their tax affairs and, if managed appropriately, any disruption can be minimised. Our advice to businesses that fall into the task force’s scope is to work in partnership with HMRC and voluntarily disclose all relevant tax information.”
The HMRC announcement follows the establishment of similar task forces in the Midlands looking at taxi firms, restaurants, the jewellery trade, haulage industry and second hand motor traders.
Since task forces of this type where launched in 2011, HMRC has collected more than £130m. It expects to bring in over £90m from task forces launched in 2014-15.
