HMRC, business records checks and the tax gap

HM Revenue & Customs risks stigmatising small and medium-size enterprises unless it provides a more detailed analysis of the UK tax gap, the Chartered Institute of Taxation warned in January. A delay in publication of an HMRC review of its business records checks programme, scrapped in 2015, appears to have added weight to concerns that the tax authority has overestimated non-compliance by SMEs.

My news story for Tax Analysts ($), published on 16 January, is now reproduced in full with permission:

HMRC Risks Stigmatizing SMEs in Absence of Record Checks Report, CIOT Says (PDF)