HMRC record checks are underway

HMRC has begun the ‘test and learn’ phase of its Business Records Check (BRC) initiative where they are inspecting business records to see if they are ‘adequate’ and ‘accurate’. They have warned that they may impose fines of up to £3,000 per case for consistent poor record keeping.

Cuan O'Shea Managing Partner at Bevan and Buckland

Cuan O'Shea

 

The early results taken from letters which have been issued to businesses after HMRC’s visit suggest that they have a template letter which recommends improvements in common areas across the board explains Cuan O’Shea managing partner at Bevan and Buckland.

Some of their recommendations include:

  • Sales invoices should be issued with consecutive numbers
  • Cash book should be maintained.
  • Drawings records should be kept
  • Mileage log maintained
  • Business records should be written up at least weekly

Apparently the letters conclude with the warning that ‘one of our officers may visit you again in the next three months to check whether you have made improvements in the areas mentioned.’

Are you worried about your record –keeping?

HMRC have published their general guidance on appropriate record keeping . Don’t forget you will need to keep all your records for at least 6 years and you must keep them in a format that is easily readable and accessible.

If you are still concerned, we can help you improve your record keeping with advice on accounting software; we also have a FREE bookkeeping excel spreadsheet and can provide bookkeeping training.

We are monitoring this record checking initative closely and will be blogging with any updates so make sure you RSS feed our blog posts. If you have any specific questions please call our business services team on 01792 410100 or email us at help@bevanbuckland.co.uk

You can also get more advice by following @bevanbuckland on twitter or register for our email newsletter

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