HMRC piloted a business records check (BRC) scheme whereby small and medium sized businesses were to be fined up to \u00a3 3,000 for keeping sub-standard books. The first phase of the scheme began in April 2011, examining companies\u2019 proof of expenses and income dating back years. The original plan was to check nearly 50,000 records, which was later revised to checking 20,000 records. However, HMRC under pressure from the business groups and the tax profession had a rethink and announced a review of the plan. The profession and the business groups felt that the checks could drive many struggling companies to insolvency against the backdrop of a worsening economy and lamented HMRC\u2019s discriminatory \u201csweetheart deals\u201d with large businesses like Vodafone and Goldman Sachs, as revealed in the recent House of Common’s Public Accounts Committee report. Bowing to pressure HMRC undertook a strategic review of the project in consultation with the professional and representative bodies to consider the overall aims of BRC, examine whether the current approach was the best way of achieving the policy objectives and identify what changes were needed to ensure that the objectives were achieved.<\/p>\n
The BRC pilot, that included discussions with trade and professional bodies\u2019 representatives, found some evidence that it was effective in improving record-keeping practices in smaller businesses. However, it was recommended that the checks could be more targeted in future, linking to available education and support. The pilot BRC began in April last year, however, completed 2,437 business records checks up until 4 January 2012. 28 per cent of those checked were found to have had some issue with their record keeping, whilst an additional 11 per cent had issues serious enough to warrant a follow-up visit.<\/p>\n
Following the rethink, HMRC has now decided to postpone making any new business records checks until a revamped approach outlined in its report is launched early in the 2012\/13 financial year. So, further consultations with representative bodies on the implementation of the recommendations of the review and on some details of the new approach are expected. In the interim, HMRC will only undertake visits already booked, as well as follow-up visits to businesses that have already been identified as having seriously inadequate statutory records.<\/p>\n","protected":false},"excerpt":{"rendered":"
HMRC piloted a business records check (BRC) scheme whereby small and medium sized businesses were to be fined up to \u00a3 3,000 for keeping sub-standard books. The first phase of the scheme began in April 2011, examining companies\u2019 proof of expenses and income dating back years. The original plan was to check nearly 50,000 records, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[],"class_list":["post-523","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n