Fine warning issued to UK firms
Businesses around the UK have been warned to keep HMRC informed of any changes in their firm or risk a hefty fine.
Tax planning could be on the agenda for a number of UK businesses following a warning from one industry expert.
Andrew Needham, a tax adviser at the Forum of Private Business, has urged businesses to inform HM Revenue & Customs (HMRC) of any changes within their firm as soon as possible.
Failure to do so, Mr Needham explained, could see them landed with a five-figure fine.
The warning comes after one business faces the threat of a £10,000 fine for failing to keep HMRC up to date with its developments.
A fine of £30,000 was originally sanctioned but Mr Needham's intervention has helped bring the figure down.
Speaking to Business Zone, the expert commented:"I am concerned that this is a change in HMRC's long-standing policy of waiving its technical ability to impose this penalty fine in such circumstances.
"If this is carried through and sets a precedent it could result in huge fines being imposed on small businesses which, in reality, have done very little wrong."