Business Records Check: Something for all businesses to keep in mind

HMRC over the next year are sending letters to randomly selected businesses (mostly cash businesses such as taxi firms, hair dressers etc.) asking for a Business Records Check.

This is a check on your business records which means they will look into how you manage them and what information you have immediately to hand. This is to make sure that you are able to complete your tax returns correctly and pay the right amount of tax at the right time to avoid interest and penalties. It will also flag up any businesses that are submitting inaccurate tax returns and keeping inaccurate records.

On the letter they will have scheduled a phone call to the business owner/director/manager when an assessment will take place. This phone call could then lead to a HMRC visit.

If you receive one of these letters you should get in touch with your accountant. They should then:

  • arrange a conference call with HMRC so you have their support throughout
  • If a visit comes out of it, arrange it to take place on their premises so again you have the full support and suitable facilities on hand to accommodate a HMRC inspector.

This is going to get a lot more popular over the next year so you need to make sure your accountants are aware of this possibility and be prepared to support you when you need it.

 

For more detailed information on Business records checks we encourage you to visit this link and have a look at the compliance checks at the bottom of the page that HMRC may enforce: http://www.hmrc.gov.uk/dealingwith/bus-record-checks.htm

 

You can always call ABC on 01427 613613 if you are worried about this or would appreciate some advice.

 

 

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