HMRC Benchmarking Team
The Transparent Benchmarking Team within HM Revenue & Customs (HMRC) has selected a number of trade sectors to test the use of ‘benchmarks’ say Harris & Co accountants Northampton. The benchmarks provide businesses, within the chosen trade sector, with a guide to see whether the net profit rate they are achieving is comparable to their competitors and within the ‘parameters’ expected by HMRC.
However, the key question really is, what will HMRC do if a business files a tax return which is outside the benchmark range? Is a full blown investigation the inevitable outcome?
To read a full update on this issue visit the Abbey Tax Blog today.