ICAEW Logo
 

HMRC Business Record Checks

27 November 2013

New approach. Since 4 November HMRC has been exploring new ways of using business record checks (BRCs) in the Edinburgh, Glasgow, Leeds, Bradford and Stockport areas. Other parts of the country won’t be affected for now, but we assume that if the trial works out, then the new approach will be rolled out across the UK.

What’s involved? Currently, BRCs involve an HMRC officer coming to your place of business, by appointment, to check that your bookkeeping procedures are sufficient to ensure your accounts and tax returns are correct.

New approach. HMRC states that the new procedure will mean, before deciding to make a BRC, it “will evaluate new risk processes and ensure new approaches are cost-effective and fit with its wider compliance activity”. In plain English, that means instead of jumping the gun and wasting everyone’s time it will make better preliminary enquiries, usually by phone, to see if record-keeping benchmarks have been met.

Benchmarks. HMRC hasn’t said what the benchmarks are, but reading between the lines, and based on reports from subscribers, HMRC is less likely to get involved where your accountant is happy with your record keeping. This applies right across the country, not just in the those areas mentioned above.

Tip 1. Ask your accountant what, if anything, you need to do to improve your record keeping. Not only will this help protect you against a possible BRC but in the long run it might reduce your accountancy bill.

Tip 2. HMRC might agree not to carry out a BRC where someone from your business is prepared to watch a webinar and take advice on record keeping from its Business Education and Support Team (BEST) (see The next step ). On balance, this is probably the lesser of two evils.

For more information on BRCs and BEST, contact us using the box below.

PS, We have been advised that HMRC might not bother with a records check if your accountant has given you a clean bill of health. It might also forgo a visit if you’re prepared to watch a webinar on record keeping.

 

 
Nathan Evans Ltd News
  
Covid-19 Latest Information 11 August 2020 21 August 20
Covid-19 Job Retention Schemes 31 July 20
Covid-19 Support 14 April 20
HMRC gets tougher on NI for landlords 23 July 15
A new twist to income shifting 16 July 15
Are dividends dead? 09 July 15
Latest Scam by Fraudsters 01 September 14
Still worth being a limited company? 01 June 14
The Xero flood 01 April 14
What did the budget do for you? 01 April 14
Money back from HMRC? 01 April 14
Tax Calculator App 01 March 14
HMRC has published the latest fuel rates for company cars 04 December 13
What to expect from the Autumn Statement from the Chancellor 29 November 13
HMRC Business Record Checks 27 November 13
HMRC Important dates for authorising an Agent in time for Self Assessment 26 November 13
Capital Gains Tax 02 September 13
Direct Sellers 28 August 13
Tax Affluent Compliance Team 14 August 13
 
 
Enquiry Form
   
16 Cambrian Way
Marshfield
Cardiff
CF3 2WB
Wales

info@nathanevansltd.co.uk
01633 681 467
07814 594 517
Resources
Tue, 13 Apr 2021 18:44:50 GMT
Labour steps up call for inquiry into finance company after revelation about Bill Crothers
Tue, 13 Apr 2021 23:02:30 GMT
Some governments are looking at offering different vaccines as second doses — but does it work?

Registered in England and Wales No: 7090510. VAT No: 983 9273 65 | Directors Nathan Evans LLB ACA & Suzanne Evans BA ACA.

Website by IT Pie – web design Cardiff