HMRC are extending their record checks!

HMRC have issued an extension on their record checking programme after 44% of businesses were found to have errors in their record keeping.

HMRC’s Director of Local Compliance believes ‘the exercise was intended to support businesses and reduce the tax gap’ after a £35 billion tax gap was found from 2009-10 figures. The programme was piloted throughout small and medium sized businesses across eight cities this year, where HMRC found 12% of companies had ‘seriously inadequate’ records.

Lee Bradley- Tax Manager

They plan to do 12,000 checks by the end of the current financial year and 20,000 are planned for 2012/13. When these results come back, a decision will be made whether to extend the programme out nationally. However, there is speculation that the Business Records Checks programme may be coming to South Wales sometime this month- so be aware!!

At the moment, penalties for inadequate records will only be issued in the most serious of cases until the process is refined but full guidance will be issued before penalties are charged.

If you would like some more advice on record keeping or have any tax queries, why not email me today at lee.bradley@bevanbuckland.co.uk or call 01792 410119.

You can also get more advice by following @bevanbuckland on twitter or get the latest tax news by registering for our free email newsletter

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