Businesses across the South West need to prepare themselves for greater levels of HMRC scrutiny over the next two years, according to experts at Evelyn Partners, the leading integrated wealth management and professional services group.

Stephen Greenaway, associate director, employee solutions in Evelyn Partners’ Bristol office, told a panel discussion at a gathering of business leaders that the taxman was becoming increasingly active in the area of employment tax.

He was one of several speakers at an Insights For Finance Leaders event, hosted by the firm’s Bristol office.

“There is always speculation around capital gains tax rates becoming more aligned to income tax but I don’t see this happening in the near future,” said Stephen Greenaway.

“There has, however, been a lot more HMRC scrutiny of general employment taxes since the pandemic. Having been diverted to focus on areas related to Covid-19, many people at HMRC have now gone back to their ‘day jobs’ and we expect to see more HMRC compliance review activity in the next 18-24 months.”

According to a survey of business owners carried out by Evelyn Partners this year, nearly a third (30 per cent) of business owners see financial wellbeing amid the cost-of-living crisis as the biggest worry for their staff members.

Adam Deacon and Joy Wisniewski, associate directors in the financial planning team, also spoke at the event on financial wellbeing in the workplace.

“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,” says Adam Deacon.

The panel discussion – key developments across the tax landscape – also featured Owen Burn, director, VAT at Evelyn Partners in Bristol, Becky Foley, associate director, business tax and Shuab Kumar, partner, business tax, and was chaired by Katherine Colledge, partner, business tax.

Meanwhile Ben Hamar, director, assurance and business services, provided a financial reporting update at the event and Amanda Smith, director, risk advisory, spoke on the changing fraud landscape.