A new programme was launched by HMRC at the end of February 2011 to monitor entities penalised for deliberately evading tax since 6 April 2009.
The entities concerned will face additional compliance checks on all aspects of their tax affairs with the prospect of unannounced visits in some cases. Furthermore, the persons and businesses may need to complete the full statement of account and the detailed self-employment pages for their Tax Returns and submit monthly VAT returns. HMRC will confirm what is required in writing.
Approximately 900 entities are to be targeted and HMRC is writing to the persons to notify them of the additional compliance steps they need to take with the aim of deterring them from deliberately evading tax going forward.
The monitoring will apply to all new businesses set up by the persons who are in the programme.