CIOT laments HMRC approach to bookkeeping improvements

Date: 17th March 2011

Small business owners operating in the UK could be among those interested in the recent comments of one leading industry body with regard to bookkeeping.

The Chartered Institute of Taxation (CIOT) has voiced its concern that HM Revenue & Customs (HMRC) is "taking the wrong approach" to improving business record-keeping.

Anthony Thomas, CIOT deputy president, said: "The CIOT is strongly supportive of efforts to improve record keeping by business. Many tax advisers have struggled to get clients to follow best practice in this area and would welcome HMRC's assistance in persuading them.

"However we do not believe this project will meet that objective. Its purpose seems to be more about raising money through penalties than about helping businesses improve their systems."

The comments follow the news that HMRC is to fine small firms up to £3,000 for employing poor bookkeeping practices.

Posted by Emily Smith