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Turnaround expert warns of tax 'bomb' PDF Print E-mail

A turnaround expert has sounded an alert to businesses of an impending tax 'bomb'.

Celia Adams, a Turnaround director who has revived local companies, and specialist in business 'Tune-ups', said pressures to reduce the tax deficit would bring in 'rapid return' new policies by HMRC.

In this 'dash for cash' wide-ranging enquiries by the Revenue would give way to quickly negotiated settlements, in a 'dash for cash'.

She said: "I am concerned that the businesses we represent could become embroiled in time-consuming tax investigations, hitting day-to-day work like a bomb going off.

"There is also a threat to the Business Payments Support Scheme – the tax deferral facility which helped businesses survive the recession. Businesses – particularly SMEs - should make sure they are prepared, with the best expert advice from accountants."

Mrs Adams, also Worcestershire chairman of the Institute of Accountants in England and Wales, echoed warnings from Worcester-based business and tax advice firm Rabjohns LLP, of increased activity by tax inspectors faced with reducing the tax gap by £4bn.

Their tertiary tax advisor Will Silsby, has already warned of the risk that the ‘dash for cash’ will see officers under pressure to cut corners - with the result that taxpayers not properly represented could end up paying too much tax.