HMRC has come under fire in recent weeks over its Business Record Checks, which target small and medium-sized businesses. HMRC claims that 44 per cent of businesses have issues with their record-keeping, while 12 per cent have seriously inadequate records.
The checks, 20,000 of which are planned for the 2012/13 tax year, could result in penalties of up to £3,000 for ‘inadequate record keeping’, a term that HMRC has yet to define.
The Business Record Checks system is now being reviewed after considerable concern was raised over the potential compliance burden it could place on already stretched small and medium sized businesses.
While the added pressure is not welcomed, keeping on top of your business records is essential. Tips on this include ensuring:
- All income is recorded and banked promptly
- All recorded expenses are authorised and valid
- All recorded debts are recoverable
- All your liabilities are identified and recorded when they are incurred
We can help you to establish and maintain an efficient business records system. Please contact us to find out more.