JW Hinks is advising that the motor trade, market traders and clothing sellers are next on the list of sectors that HM Revenue and Customs (HMRC) will target in its tax crackdown.
HMRC is launching 30 new taskforces in the 2012/13 tax year to target businesses suspected of tax evasion, including the above trades, and is already looking into the activities of restaurants and scrap metal dealers.
The existing 12 taskforces launched in 2011/12 are expected to recover up to £50 million in unpaid tax, according to HMRC, with some taskforces achieving 100 per cent ‘hit rates’ with 13 criminal investigations now under way.
Each taskforce will gather data using HMRC’s existing information powers, focusing on groups of up to 600 businesses in each location targeted.
Dan Morgan, Tax Associate at the Edgbaston firm, said: “Businesses which fail to co-operate could face a criminal investigation. If your business is targeted then you should seek professional advice at the earliest opportunity. The sooner you act, the more your advisers can do to help.”