Posted by Stuart Christy on 06 Nov 2012
HMRC Business Records Checks: What New Approaches?
HM Revenue & Customs have introduced a fresh approach to Business Records Checks (BRC) from 1 November 2012.
In summary, those taxpayers seen by HMRC as more likely to have poor records will be asked to have a call to complete a questionnaire so that HMRC can determine whether further action is required.
Small and Medium-sized Enterprises
A pilot scheme run by HMRC from April 2011 to February 2012 for Small and Medium-sized Enterprises (SMEs) found that 36% of businesses had issues with record-keeping, with 10% of these seen as serious by HMRC and needing follow up action.
A review of the pilot scheme found that the programme had improved overall business record-keeping but recommended the introduction of better targeted checks and wider education and support for businesses.
HMRC has issued a statement that rather ominously signed off as follows on the subject:
“Depending on the outcome of this call, HMRC will confirm to some customers that no further action is required. Where some issues are identified, customers will be offered targeted self-help education options. Customers who are assessed as being at risk of keeping inadequate records will be referred for a BRC visit.”
If this is an area that you believe you may need help with, our accounting and tax teams are able as part of their standard services to offer detailed advice on the level of records businesses and individuals need to keep.
Contact Tax Innovations
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or email@example.com
- Tax Relief For Residential Mortgages
- Non-Resident Landlords – UK Tax Update
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- UK tax residents – beware of US LLCs!
- UK Property Sales: Capital Gains Tax for Non-Residents