How does your business manage its tax risk?

Most businesses, whatever their size, are aware of the risks and the importance of being tax compliant.

As tax risk governance rises to the top of the HMRC agenda, ensuring you have accurate tax reporting systems in place and retaining the trust of your clients has never been more critical.

Tax risk often arises from decisions taken within a business, that don't involve colleagues responsible for tax, but the ripple effect can be felt far beyond annual compliance obligations.

With the introduction of new technology making it far easier to monitor business behaviour, it's important that business owners understand their company's tax risks and take steps to minimise them.

Tax risk checklist

A good place to start is to check your business has the following in place:

• A comprehensive tax policy
• Clear guidance and training for any members of staff involved
• An analysis of your tax issues and risks – both known and unknown
• An up-to-date business continuity plan.

It's also important to ensure that your accountant and colleagues responsible for tax and financial reporting and compliance are engaged.

Your business reputation is everything, so even though it's not possible to eliminate tax risk, there are steps you can take to reduce any risks and to understand their exposure.

Ensure your tax governance and risk management frameworks are aligned with your wider governance framework and are fully embedded in your company culture.

As tax offices make tax control frameworks an integral part of their regulations, you can ensure you're prepared for any audit that may come your way. These can be incredibly time-consuming, stressful and costly, so the more you can plan ahead, the better and the less disruptive any investigation will be for your business.

HMRC is becoming increasingly digitally savvy, enabling them to spot 'red flags' among large data sets and your business should be ready.

In recent years, both legislation and resulting process changes to tax risk governance have been introduced, including some businesses having to appoint a Senior Accounting Officer.

How can Giltinan and Kennedy work with you to manage your tax risk?

We work in partnership with you, recommending the best course of action for you and your business. This plans and manages any corporate, indirect and employment tax risks, to bring financial stability and growth.

Our clients include many businesses, charities and individuals across Horsham, West Sussex and beyond. Please feel free to get in contact with us for an informal chat about your business finances on 01403 337490 or learn more at https://www.giltinan-kennedy.co.uk/services/tax-advisers