A step away from the issue of networking in today's post. I'm glad the headline got your attention, because for any small business one of the biggest nightmares is unwarranted attention from the tax man. Whilst we all work hard to make sure our businesses are tax compliant, tax inspectors have a way of making us all fell a bit queasy: our integrity and efficiency are being second guessed.
By far the best protection from the tax man for SMEs is offered through membership of the Federation of Small Businesses. The Federation's "Tax Protection Scheme" comes as an automatic right of membership, which for a one man band costs £150 for the first year, £120 thereafter. If you have between 1 and 4 employees then it's £200 for the first year, £170 thereafter.
What does the Tax Protection Scheme offer? Professional advice and support and full representation during any HMRC investigation. Now when you consider that the average length of a tax enquiry is 21 months; just consider the cost, financial, emotional and time-wise that such a process will take out of you, your business your health and your family.
Here is an interesting statistic, in 25% of HMRC investigations the businesses concerned had a turnover of less than £25000, 50% of targeted businesses had a turnover of less than £150000. HMRC clearly sees small businesses as an strong source of revenue yield.
What are the results of FSB protection? Well 70% of FSB members had an additional liability of £500 or less after investigation. 30% had no additional liability. Add to that the fact that FSB professionals do all the work for you whilst you look after your business, and you can see like, BFORB East Yorkshire members have that it's a no- brainer.
Here is the link to the FSB website. If you call them now you will receive a visit from an officer within a few days( weather permitting).
Good luck
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