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19 Apr 2011
THE TAXMAN HAS sent letters to more than 1,000 SMEs to arrange visits to check their record keeping.
As Accountancy Age revealed on 7 April, HM Revenue & Customs sent out letters before replying to the formal consultation period on the spot checking of small businesses' records. The Revenue will be seeking confirmation that businesses are maintaining "accurate and adequate" business records. A HMRC spokesman confirmed that around 1,200 businesses will be checked in the first round.
Further reading
Richard Mannion, tax partner at Smith & Williamson, said: "This is the first time that the tax authorities will be looking at records for the current year. Until now, HMRC has only scrutinised a firm's tax affairs if it thinks the business has filed an inaccurate return and is paying too little tax. This new approach heralds a sharply toughening attitude to SME record keeping by HMRC."
Mannion said that he fears that new businesses are more likely to be targeted.
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Visitor comments Add your comment
Best use of resources
Wouldn't HMRC achieve better results, I mean tax, by targetting these resources at those businesses who are not even registered with them?
Posted by: Richard, 19 Apr 2011 | 13:19
Can the Revenue advise on record keeping?
The proposed action by the Revenue to look at business books and records should be postponed until such time as the Revenue can evidence that they are able to keep proper books and records. The recent failures to keep track of PAYE liabilities evidences that there are serious failings in the Revenue’s record keeping ability and until they can prove that they have a robust and accurate accounting and record keeping system they cannot advise on this matter. Also there needs to be a full and proper consultation with all stakeholders to ensure that the demands of all parties are meet. As what is adequate for one business can be totally different to that another.
Posted by: Tony Thorne, 19 Apr 2011 | 18:39