|
No company likes to hear that their office is to be inspected by HM Revenue & Customs. And under recently published laws - the Finance Bill 2008 - it could soon be possible for the taxman to visit home offices. What could that mean for small business owners?
Due to come into effect in April 2009, the new laws will mean that tax inspectors can visit a home if part of the residence is being used for business purposes. This is likely to impact the thousands of people who now remotely work or run their small business from, say, their back bedroom. But don't worry, the taxman isn't about to burst into your living room whilst you've got your feet up, with a cup of tea and are watching an episode of Corrie, far from it.
HMRC will still only be able to run an inspection at home-based offices if they think that it's "reasonably required". But some people are concerned about one point that's expected to come into force with the bill: that the home-business owner will no longer be able to object to the visit, even though they may only be given 24 hours' notice.
Refusing to let a tax inspector into your business premises can result in a fine. So there's only one thing for it. You must make sure that your accounts are up to date at all times and ready in case anyone comes knocking.
So before the taxman cometh, try to get professional help from a bookkeeper or accountant to make sure that everything is in order.
The inspectors will aim to give you advice and help during their visit. This will later be backed up with written documentation. But, if you want to save yourself time and money, ensure that there are no faults to be found in the first place.
|
