Advisers have been warned to review clients' tax affairs amid rumours HM Revenue and Customs (HMRC) is targeting the self-employed sector to further boost collection rates.
HMRC raised £255m last year by targeting self-assessment tax returns. Accountants UHY Hacker Young said the 2009/10 figure was 7% higher than the £238m collected in 2008/9. Tax partner Roy Maugham (pictured) said HMRC would be targeting anyone it saw as "a bit too ‘entrepreneurial'". Self-employed clients would be at "far higher risk" of investigation for both personal tax and business affairs, he said. Daniel Cawley, an IFA at small-business specialist 121 Financial Services, said a number of his clients were taking out extra insurance for tax inspection. "There is a potential ...
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