HMRC Cracks Down on Large Businesses
Whether your business is big or small it doesn’t pay to get involved in tax avoidance schemes.
Apple is the latest in a long line of technology companies to be accused by the HMRC of avoiding their tax responsibilities.
In a recent report, Apple was found to have paid only £10.3m in UK corporation tax for its 3 main UK subsidiaries during the last financial year – despite having earned £6bn during the same period.
And they are not alone…
Amazon have also come under investigation after it was found to have generated £7.6bm in sales in the UK, yet didn’t pay any corporation tax for this profit.
What is to be learnt?
These investigations into Apple, Amazon and Google are a testament that no matter how big your business is or how powerful you think you are, you can’t get away with tax avoidance.
Yet things are only set to get stricter…
During the recent 2012 Budget, the government announced a long line of measures to stop companies from entering into tax avoidance schemes, including a variety of taxes, penalties and clauses.
You could even say that the theme of this year’s budget was: pay your taxes or face heavy penalties.
However, just because tax avoidance schemes are no longer an option for businesses, doesn’t mean you can’t improve your tax planning and limit your liabilities.
With the support of a chartered accountant they can help your business to create effective accounting strategies which will not only help your business to grow but will ensure that you remain profitable and are not burdened by unnecessary taxes.
So speak to your accountant today and ensure your business meets the HMRC’s guidelines. Alternatively, if you’re just starting out or are looking for a new accountant, sign yourself up for a free business appraisal today and make sure you have got the right accountant for your business.