Business records checks to be 'more targeted'

Date: 6th February 2012

Small business owners across the UK could be among those interested in recent developments regarding the government's business records checks programme.

HM Revenue & Customs (HMRC) has announced that following a review of the programme, the checks are to be "more targeted".

The department explained that while the review provided "clear evidence" that the programme has led to bookkeeping improvements in smaller businesses, more needs to be done.

Richard Summersgill, HMRC's Director of Local Compliance, commented: "Four out of ten businesses had an issue with their business records, and of those that required a follow-up visit, we found that some 90 per cent subsequently improved their record-keeping.

"However, after reviewing the pilot programme and listening to the views of businesses and representative bodies, we acknowledge the need for a fresh approach to business records checks."

The expert added that the aim of the programme is to ensure that businesses pay the right amount of tax at the right time, thus avoiding potential interest and penalties.

Posted by Emily Smith