Businesses urged to improve record keeping

Date: 3rd June 2011

Small businesses could be encouraged to seek assistance with their bookkeeping following the publication of a recent report.

Accountancy Age has revealed that HMRC agents have threatened to carry out follow-up checks on firms placed on the mandatory pilot scheme for poor record keeping.

The visits will be used to ascertain if the firms involved have made any improvements since being placed on the scheme.

Abbey Tax Protection has said of the move that any help for smaller firms to maintain their records should be welcomed.

A spokesman for the firm told the news provider: "Experience tells us that HMRC has an unhealthy desire to be prescriptive in these initiatives, without taking into consideration the big picture and whether the recommendations are fair and suitable for the SME to comply with.

"We suspect the [initiative] will not result in bespoke suggestions based on the size and nature of the business, but rather the suggested improvements will be cut and pasted from an internal one size fits all guidance."

Posted by Thomas Fletcher