UHY Hacker Young

Payroll Tax ‘Mistakes’ Cost Small Businesses Extra £373m

Payroll Tax ‘Mistakes’ Cost Small Businesses Extra £373m

Small businesses have paid a whopping £373.4m in additional tax across 2014 to 2015 after an investigation into tax avoidance and return errors was launched by HM Revenue and Customs (HMRC). A report from UHY Hacker Young has claimed that small businesses have been hit particularly hard by the crackdown, with these tax ‘mistakes’ accounting for over half of the additional sums collected – despite being responsible for only 11% (£96bn) of total UK payroll. This is in stark contrast to larger companies who paid the comparatively low figure of £363.9m, despite making up 89% of the payroll. The tendency to take on casual labour, operate as umbrella companies and run flexible workforces have been given as possible reasons as to why small businesses are falling a foul of tax regulati... »