Tax Compliance Is Still Crucial For Businesses Despite Other Distractions
Although businesses may have other priorities at the moment, it's important that they continue to keep up-to-speed with the latest tax legislation and HMRC requirements.
Dated: 16 July 2020 Author: James Hunt, Employment Services Senior Manager
There’s no doubt that businesses have a lot on their plate at the moment as we continue to ride the COVID-19 storm.
Applications for additional financial support and using the Job Retention (Furlough) Scheme to protect employees and businesses from serious cashflow issues are likely to be high on the agenda for most firms.
But despite these unprecedented times and unforeseen distractions that businesses face, it’s still crucial they stay focused on complying with any new or updated tax legislation and are up to speed with HMRC requirements.
Businesses need to make sure they review their systems and procedures- particularly around PAYE reporting requirements, expenses and benefits.
Expenses policies should be monitored on a regular basis and firms need to be aware of end of year reporting requirements via P11D and/or PSA.
Not keeping up to speed with frequently changing legislation could result in large tax liabilities which would be picked up in any HMRC compliance review.
These are not easy times, but HMRC won’t accept COVID-19 as an excuse for out-dated procedures and unpaid tax bills.
Although HMRC relaxed certain measures for businesses during the lockdown to support them through the pandemic, such as suspending investigations into businesses believed to have under-reported tax liabilities correctly, there is no hiding place.
Businesses still have a duty to make sure they don’t slip behind and even if the threat of a tax investigation has been lifted for the moment they should not be lulled into a false sense of security. It won’t just disappear.
HMRC expects businesses to review their systems regularly which should have been the norm before, and should still be during and after, this crisis.
Take Action Now
Please contact our Employment Services Team to review your existing policies and procedures by calling 0845 555 8844 or simply complete our enquiry form. Don’t wait, take advice now, we are here to help you.