A FIRM of accountants has warned husband-and-wife teams the Inland Revenue could be on the warpath.

Crowther Beard, which has offices in Worcester, Evesham, Malvern, Pershore and Ledbury, warns large tax bills await spouses receiving large dividends from a husband or wife's business.

Chris Hobbs, tax partner with Crowther Beard, said where the spouse has little or no involvement in the business, the Revenue is using the Taxes Acts to classify the dividends as income of the business proprietor, removing the potential tax advantages of the arrangement.

"Anyone who uses this sort of arrangement needs to review whether a Revenue attack is likely and, if so, what steps should be taken to put matters beyond the Revenue's reach.

"Business owners should contact their advisers to review their position as soon as possible."

Crowther Beard is a five-partner practice offering audit, accountancy, business and taxation advice.