HMRC Business Record Checks

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HMRC plans to check the business records of 200,000 small traders over the next 4 years and has started a pilot exercise by visiting taxpayers on a ‘test and learn’ basis.

The threat of penalties is premature at this stage as HMRC is on record as saying that no penalties will be sought at this ‘test and learn’ stage- only when the checks go live and in cases where there are significant deficiencies in the business record keeping will HMRC charge penalties of up to £3000.00 These penalties may be imposed irrespective of whether the officers have identified any underpayment of tax.

We help many businesses improve their systems and record keeping that not only helps provide them with the management information for managing and moving their businesses forward, but also protects them if they are looked at by HMRC under this initiative.