It has been revealed that local compliance teams were able to bring in significant extra revenue to HMRC over the course of last year, as a result of investigations into small and medium sized businesses.
Shifting its attentions away from major firms and onto SMEs – which are thought to account for 51 per cent of the tax gap – the gap between the tax owed and the tax collected – in the UK, the taxation body said large firms accounted for around 25 per cent of the tax gap.
The tax gap represented by UK SMEs was thought to be £18.3 billion in lost revenue in the year 2014-2015, highlighting the reason why HMRC is cracking down on SME tax.
Following a Freedom of Information request, accountancy network, UHY Hacker Young, confirmed that the taxation body received a £468 million tax boost as a result of this new probe into SME's tax affairs.
Roy Maugham, tax partner at UHY Hacker Young, said: "There is increasing pressure on small and mid-sized businesses to spend their time and money on systems to ensure that tax affairs are accurate and up to date.
“Without adequate care, small businesses are at risk of being pulled up over minor mistakes or small disparities, which could incur disproportionately heavy fines and penalties."