HMRC Scales Back Business Record Checks
THE TAXMAN'S controversial plan to check small business' record-keeping has been scaled back, it has emerged.
HM Revenue & Customs will check 20,000 business' records - down fr om its original target of 50,000.
Its business plan had included a target of 20,000 record check visits to be completed by March 2012, which has now been reduced on a pro rata basis of 12,000.
However, HMRC described its plan to increase staff working on the check from 30 to 120 - plus the increase to 20,000 checks next year - as part of an 'extension' of the scheme.
An HMRC spokesman said: "Currently, having undertaken pilots initially and by building up the numbers in a measured way, HMRC is seeking to develop and refine the BRC approach before introducing it on a larger scale."
HMRC's director of local compliance, Richard Summersgill, said: "Good record-keeping helps businesses pay the right amount of tax at the right time, thereby potentially avoiding interest and penalties.
"Adequate records give businesses a clear idea of their trading position and profitability, allowing them to make business decisions and adjustments to ensure survival and success. And wh ere a check has shown a business keeps adequate records, it gives HMRC a greater degree of assurance as to the likely accuracy of its tax returns."
- HMRC Enquiring English Premier League Clubs and Players Over Potential Tax Avoidance on Sale of Players’ Image Rights
- VAT Fraud Leads Father and Son Duo to Jail
- Mechanic Ordered to Pay Back £208k with Respect to a Tax Fraud
- Large Businesses Tax underpayments increases by 13% to £25bn
- OECD Releases Compliance Ratings on Tax Transparency
- LITRG urges to Act Fast on Missed Tax Credit Renewals
- Legal and Accounting Businesses Contribute £15.5bn in Taxes for UK Treasury