Can't Repay Bounce Back Loan? Get Free Advice

Require Immediate Support? Free Director Helpline: 0800 644 6080

Real Business Rescue

Free Director Helpline: 0800 644 6080

Cross-border payments come under HMRC scrutiny

Updated:

Share:
Insolvency Practitioner Approved

HMRC Focussing On Cross-Border Payments Amid Tax Avoidance Clampdown

HM Revenue & Customs (HMRC) is increasingly focussing on processes relating to cross-border payments within individual or foreign-parented companies in the UK as it continues its tax avoidance clampdown.

There are believed to be some £19 billion worth of assets under investigation with a proportion of those amounts going untaxed by HMRC.

Received a Bounce Back Loan?

Don't Worry - There are thousands of other company directors going through the same process. No matter what position you are in and need looking for options, speak to a member of the Real Business Rescue team. It's Free & Confidential.
The team are available now -  0800 644 6080

It is not clear precisely how much could potentially be recouped by Britain’s tax collecting body if its investigations prove successful but there is an apparent determination to see significant reductions in the amounts of money going untaxed by international operators.

According to Heather Self, a partner at the law firm Pinsent Masons, most large scale companies that might have avoided tax through cross-border transactions have already seen their activities scrutinised and habits are changing as a result.

Therefore, it could be the case that smaller but still relatively large companies with operations in different countries could now become the primary focus of investigations by HMRC and its tax avoidance experts.

“Given how thoroughly their transfer pricing arrangements have been scrutinised, HMRC may now see the biggest multinationals as being relatively low-risk, while mid-tier businesses now represent a happier hunting ground,” Self told the Financial Times recently.

“Businesses of any size that have cross-border intra-group transactions should now be aware that HMRC are likely to have them firmly in their sights.”

Clamping down on tax avoidance among companies of different sizes around the UK has been repeatedly highlighted as a priority for the Treasury over the past several years.

Chancellor George Osborne used his Budget speech in July to pledge £800 million in additional funding to bolster the efforts of tax avoidance and non-compliance experts at HMRC over the course of the next five years.

Need to speak to someone?

If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080

Osborne said that he hopes to see close to £2 billion in extra revenues generated by HMRC on behalf of the Treasury through its clampdown on “tax fraud, offshore trusts and the businesses of the hidden economy”.

In addition, individuals and businesses that generate profits via popular E-commerce websites such as Amazon and eBay are increasingly coming in for HMRC scrutiny in relation to any income they are not currently declaring as they should.  

Contact the RBR Team Today


Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY
Dots
Free download

Free Insolvency Report

Claim Your Free Business Review

Simply search your Limited Company Name or Company Number

Next Steps

We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.