25 Oct 2013
HM Revenue & Customs (HMRC) has announced that it will be exploring new approaches to Business Records Checks in selected areas of the UK, starting from next month. Under the Business Records Checks programme, HMRC can use on-site visits to encourage small and medium-sized businesses to improve their record-keeping standards.
HMRC previously launched a pilot programme of Business Records Checks in April 2011, to address the issue of poor record-keeping and the associated loss of tax, and in February 2012 a revamped system came into effect.
Following the introduction of the new system, businesses whose records were found to be inadequate on the first inspection, and who received follow-up visits, have all improved their record-keeping standards, and HMRC has not needed to charge any penalties.
As a result, HMRC is now seeking to better target the checks and ensure that they are cost-effective, and from 4 November will be evaluating new risk processes in Edinburgh, Glasgow, Leeds, Bradford and Stockport. For customers outside these areas, HMRC will continue with any existing Business Records Checks until they are completed.
We can help with your business record-keeping requirements.