HM Revenue & Customs (HMRC) has been called to task for spending taxpayers money sponsoring Channel 5 show The Business Inspector, which starred Pall-Ex chief executive Hilary Devey.
According to documents seen by CM, HMRC spent £370,000 on the show and believed its contribution to the series would provide the government with an "excellent return on investment", raising awareness among small businesses for the need to keep good records.
Responding to a Freedom of Information request from a member of the public, HMRC goes on to explain that failure to take reasonable care of records costs the Exchequer approximately £6bn a year, and some 30% of small- and medium-sized businesses make errors that result in unpaid tax.
A spokeswoman for HMRC adds: "HMRC evaluates all marketing to ensure excellent value for money for the taxpayer.
"The evaluation of The Business Inspector is still ongoing, but initial findings show that there was an average of 865,000 viewers per episode, which means we got our very important message across to a large audience."
A spokesman for the Forum of Private Business adds: "The amount of money spent on this programme does seem steep, but I would not criticise HMRC's aim of trying to connect with small businesses."
The series ran on Channel 5 in March and April this year and starred Devey, the founder of the Ellistown, Leicestershire-based pallet network - who also appeared in Channel 4's Secret Millionaire show in 2009.
