HMRC Benchmarks Traders' Profits 2014
July 22nd, 2014
While every attempt will be made to ensure that information provided is accurate at the time of publication, it should be treated as guidance only and does not constitute legal or professional advice. Tax law and guidance changes frequently and readers are advised to consult the current relevant product for the most up-to-date information on this topic.
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HMRC has begun testing the value of publishing acceptable 'benchmarks' of bottom line net profit ratios. This is aimed at improving behaviour and reducing the scope for errors being made by the businesses falling within the targeted trade sectors.
As a tax practitioner, you need to be aware of which sectors have been targeted so far, the points to consider when preparing 2013/14 Tax Returns as well as the action that HMRC will take where traders fall below the benchmarked range.
To help you, we have provided you with access to our guidance note that will explain "HMRC Benchmarks Trader's Profits" in more details. We have also prepared a short video in partnership with Markel Tax Protection which you can watch below.