New approach to checking business records
Following an extensive review period, the HM Revenue and Customs (HMRC) is set to introduce a new and ‘fresh approach’ to its business records checks.
Leaders say that the review found ‘clear’ positives in the pilot programme, particularly for smaller businesses. However, the review recommended that the checks are more targeted in future, linking to available education and support.
HMRC will now postpone making any new business records check appointments until the revamped approach outlined in the report is launched early in the 2012-13 financial year.
HMRC’s Director of Local Compliance, Richard Summersgill, said: “Four out of ten businesses had an issue with their business records, and of those that required a follow-up visit, we found that some 90 per cent subsequently improved their record-keeping. However, after reviewing the pilot programme and listening to the views of businesses and representative bodies, we acknowledge the need for a fresh approach to business records checks.
“The BRC visits provide benefits for the business and HMRC. We want businesses to pay the right amount of tax at the right time, avoiding potential interest and penalties. The checks also give greater assurance to HMRC when the business submits its tax returns.”
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