SME's hit with VAT bills

 HMRC raises extra £3.5bn in VAT from SMEs

HMRC raised £3.5bn of extra VAT as a result of probes into SMEs last year. SMEs account for 44% of the overall tax gap, with VAT representing 36% of that gap. Kevin Igoe, of the tax investigation insurance firm PfP, said: "VAT investigations represent a rich seam for HMRC and the area is coming under increasing focus as a result. A ‘hardcore’ of tax-evading small businesses are making life difficult for the vast majority of compliant SMEs and leaving them facing investigations over genuine oversights and errors.”

Source: Daily Express (29/02)   Financial Times (29/02)   The Independent (29/02)