Taxman targets 1,200 SMEs over record keeping
HMRC has confirmed that it will be checking the business records of over 1,000 small and medium businesses
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.
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.