In a recent report, Evelyn Partners, a wealth management and professional services group, has warned businesses across the South West to brace themselves for heightened levels of scrutiny from HMRC (Her Majesty's Revenue and Customs) over the next two years. The group voiced this concern during a panel discussion at a meeting of business leaders.

The tax authority, according to Evelyn Partners, is becoming increasingly active in the area of employment tax. This comes after a period where HMRC had shifted its attention towards areas related to the Covid-19 pandemic. Now that most of the staff have returned to their regular duties, it is expected that HMRC will ramp up its compliance review activity in the coming 18 to 24 months.

Stephen Greenaway, associate director, employee solutions in Evelyn Partners’ Bristol office, shared his insights on the issue. He mentioned that while there’s always speculation about capital gains tax rates becoming more aligned with income tax, he doesn’t foresee this happening in the near future. However, he did affirm that there has been a noticeable increase in HMRC’s scrutiny of general employment taxes since the pandemic.

Evelyn Partners' warning comes on the heels of a survey they conducted among business owners this year. The findings revealed that 30% of business owners identified financial wellbeing amid the cost-of-living crisis as the primary concern for their staff members. This highlights the importance of financial planning and the role it can play in alleviating some of the stressors associated with the current economic climate.

Adam Deacon and Joy Wisniewski, associate directors in the financial planning team at Evelyn Partners, also spoke at the event on financial wellbeing in the workplace. They underscored the benefits of assisting staff with their financial planning. According to them, it has multiple advantages for the business including attracting and retaining the best talent, boosting productivity and focus, and fostering greater staff engagement.

Deacon said, "Helping staff with their financial planning can bring so many benefits to your business including attracting and retaining the best talent, boosting productivity and focus, and securing greater staff engagement."

Evelyn Partners' report and the subsequent discussion underscore the need for businesses to be prepared for increased scrutiny from HMRC, while also highlighting the importance of focusing on the financial wellbeing of their staff. As the economic fallout from the pandemic continues to unfold, it’s clear that businesses must take proactive measures to navigate the challenges ahead.

In conclusion, businesses in the South West are advised to prepare themselves for more rigorous scrutiny from HMRC in the coming years. At the same time, they should also consider implementing strategies to support the financial wellbeing of their employees, which could ultimately lead to a host of benefits for the business.

(Source: Business Live)

Summary:

Evelyn Partners, a professional services group, has forewarned businesses in the South West about anticipated increased scrutiny from HMRC over the next two years, especially in the area of employment tax. This expected rise in HMRC's activity follows the organisation's focus on issues related to the Covid-19 pandemic. Stephen Greenaway, associate director at Evelyn Partners, noted a growing focus on general employment taxes. The warning aligns with a survey conducted by Evelyn Partners where 30% of business owners cited the cost-of-living crisis as their staff's main concern. In light of this, the group recommends businesses to support their employees' financial wellbeing, which could lead to higher talent retention, productivity, and engagement. Therefore, South West businesses are advised to brace for HMRC's intensified scrutiny and consider supporting their employees' financial wellbeing.