If you’re running a business, dealing with HMRC is part of everyday life. But what many people don’t realise is that HMRC’s focus changes over time. They regularly shift their attention to areas where they see more mistakes or higher risk.

The good news? Most issues are avoidable if you know what to look out for.

Here are some of the key areas HMRC is paying closer attention to—and what you can do to stay on track.

1. Getting the Basics Right

It might sound obvious, but a large number of HMRC checks come down to simple errors such as missing paperwork, incorrect figures, and late submissions.

What you can do:
– Keep your records organised (invoices, receipts, bank statements)
– Don’t leave submissions until the last minute
– Double-check your figures before filing

2. Expenses and What You Can (and Can’t) Claim

This is one of the most common problem areas. HMRC often sees personal costs being claimed as business expenses or poorly supported claims.

What you can do:
– Only claim costs that are clearly business-related
– Keep receipts and short notes explaining unusual expenses
– Ask your accountant if you’re unsure

3. Cash-Based Businesses

Businesses dealing heavily in cash are more likely to be reviewed, especially where income may be underreported.

What you can do:
– Record all sales
– Keep a consistent system
– Ensure your banking matches your records

4. Director’s Loans and Personal Withdrawals

Many business owners take money from their company, but the way this is recorded matters.

What you can do:
– Keep clear records of withdrawals
– Separate salary, dividends and loans properly
– Review your loan account regularly

5. Making Tax Digital (MTD)

Digital record-keeping is becoming more important, and mistakes often happen when records are not kept up to date.

What you can do:
– Use reliable software
– Keep records updated regularly
– Get support early if unsure

6.Late or Incomplete Filings

Missed deadlines can trigger penalties and unwanted attention.

What you can do:
– Plan ahead for deadlines
– Send information to your accountant early
– Set reminders throughout the year

Final Thoughts

Most HMRC issues aren’t caused by anything serious—they’re usually due to rushed processes or small misunderstandings. Staying organised and asking questions early can save time, stress, and money.

If any of these points sound familiar, it may be worth reviewing your systems now to avoid bigger problems later.

For advice and support with any of the points raised, contact the Nicholsons team who would be happy to help.