ACCOUNTANCY FIRMS will be spared the ignominy of having the taxman check the quality of their business records.
HM Revenue & Customs has revealed in a Freedom of Information request that it will not check firms' records when it relaunches the records check scheme later in the year.
The Business Records Checks Scheme has been put on hold after criticism from advisors and small business representatives. They voiced concern that the scheme, which intended to improve record-keeping - and therefore more accurate tax bills - through HMRC checks, was unfocused and required more consultation.
Practices had been visited as part of HMRC's 2,500 visits.
The FoI request by Abbey Tax into the number of visits to practices could not be completed by HMRC due to the amount of time it would take to check its own records.
However, the letter from HMRC's FoI team states that "we have sought to learn from our experiences to date to ensure our interventions are well-targeted, so we would not now carry out a BRC on an accountancy practice".
Guy Smith, senior tax consultant at Abbey Tax, said: "This is a promising start from HMRC as it seeks to improve its targeting criteria for selecting businesses suitable for Business Record Checks. However, there is a lot of work still to be done in deciding what constitutes a significant failure deserving of a record keeping fine and when that fine should be levied."
Why should accountancy firms be excluded is it because there is an disclsure opportunity coming for accountancy firms? In any case what is an accountancy firm? Seems to be open to abuse this one
Posted by: Bill Stevenson, 13 Feb 2012 | 12:38
Accountants are also capable of being incompetent, careless or devious. They should not be exempt from checks.
Posted by: Jane Hatton, 16 Feb 2012 | 10:49
HMRC should take stock of the quality of their own records and tax avoiding behaviour of it's own senior staff first...
Posted by: HMRC, 28 Nov 2012 | 15:23
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.