
Is your business prepared for increased HMRC scrutiny?
Recent figures show that HM Revenue & Customs (HMRC) recovered £45.7 billion in tax probes in 2024, a £10 billion increase from the previous year.
With 5,000 more compliance officers set to join HMRC over the next five years, businesses can expect more audits, investigations, and VAT compliance checks.
VAT is under the microscope, with an estimated £10.1 billion in unpaid VAT recorded in the last tax year alone – a 20 per cent rise from 2023.
HMRC attributes much of this to legal interpretation and boundary pushing by businesses, and it is making clear moves to close the tax gap, which is fast approaching £40 billion.
Should businesses be concerned by a more vigilant HMRC?
HMRC is actively increasing its workforce to target VAT errors, tax underpayments, and aggressive tax planning.
If your business has taken a risky approach to VAT mitigation, now is the time to review and reassess.
Large businesses are being challenged more frequently on VAT, with 72 per cent of unpaid VAT linked to legal interpretations.
Only five companies proactively disclosed their VAT positions to HMRC last year, meaning many others could face disputes and investigations.
Businesses found to be non-compliant could face penalties and interest charges, as well as reputational damage.
No company wants to be caught up in an HMRC investigation that could have been avoided.
How can businesses prepare?
If your business has relied on aggressive tax interpretations, ensure they are defensible and compliant with current HMRC guidance.
HMRC is increasingly requesting detailed documentation during compliance checks. Keeping thorough, well-organised tax records will help prevent issues and defend your position in case of an audit.
If you are unsure about a particular tax treatment, proactive disclosure to HMRC may help mitigate risks and potential penalties.
The message from HMRC is that businesses should expect greater scrutiny, more investigations, and tougher enforcement.
Get ahead of potential tax issues now by reviewing compliance measures and ensuring that your VAT practices are sound.
Get in touch with our tax specialists today to ensure your business is prepared for HMRC’s increasing focus on compliance.
Social

Recent Posts
- How do Companies House address suppression changes impact company directors?
- VAT fraud – Avoid getting caught out by phishing attacks
- Why an apprenticeship in accountancy could be your best career move
- Are you missing out? The deadline to boost your State Pension is approaching
- Millions miss Self-Assessment deadline – A reminder to prepare for 2026
Archives
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
Categories
- Accountancy
- Accounting
- Agriculture
- Apprentices
- Asset and Wealth Management
- Ben Allen
- Blog
- Blogs
- Bookkeeping
- Brexit
- Budget
- Business
- Business Advice
- Business Advice News
- Business Blog
- Business News
- Business Start-ups
- Capital Allowances
- Cash Flow
- Cash flow management
- Charities
- Corporate Tax
- Corporation Tax
- Covid-19 Home working and expenses
- Economy
- Employees
- Employment
- Employment and payroll
- Family Businesses
- Finance
- Financial News
- Financial Planning
- Fraud
- Funding
- Government Funding
- Grants
- Guide
- HMRC
- Home working and expenses
- Income Tax
- Inflation
- Inflation / Interest Rates
- Inheritance
- Insurance
- Investment
- Latest Business News
- Latest News
- Legal
- leisure and hospitality
- Loans
- Making Tax Digital
- Money
- MTD
- News
- PAYE
- Payroll
- Pension
- Pensions
- Personal Tax
- Personal taxes and finances
- Property
- Property News
- R&D
- Redundancy
- Scam
- Self Assessment
- Self Employed
- SME
- SMEs
- SMEs / Business
- Start ups
- Tax
- Tax Blog
- Tax News
- Tax Planning
- Tourism
- Uncategorized
- VAT
- VAT and MTD
- VAT deferral
- Wages
- Wealth Management