Horsebox owners are being warned that they are set to be the subject of an HM Revenue & Customs (HMRC) investigation, as it continues its clampdown on tax evasion.
HMRC apparently suspects that some farmers and rural business owners are buying horseboxes through their company and either falsely claiming the cost as a business expense for tax purposes, or failing to declare personal use of the horsebox and paying tax on it as a ‘benefit in kind’.
Thanks to the department’s Connect computer system, HMRC officials can now identify discrepancies between an individual or company’s official tax records and information from third party sources.
Underpaid tax relating to horseboxes may seem to be a mere drop in the ocean but HMRC is focussing its attention on these high value assets.
It shows how determined HMRC is to capture every mistake made in tax returns. Without the correct documentation, even owners of horseboxes who have done nothing wrong could find themselves on the receiving end of a lengthy and uncomfortable tax investigation. As 31 January approaches, the deadline self-assessment tax returns, it is important to get your tax affairs in order.
For more information please contact our Taxation team on T: 0114 251 8850.