Small firms face fines for poor book-keeping

Date: 31st December 2010

HMRC is looking to reduce the amount of unpaid tax in the UK by targeting small businesses that have displayed poor record-keeping.

According to industry publication Accountancy Age, the department is to focus on 50,000 of the UK's two million smaller firms where it believes poor record keeping has led to tax payment discrepancies.

The news could encourage a number of small business operators to seek the assistance of a specialist tax accountancy service to make sure all their affairs are in order.

This could prove especially important at the present time as the January 31st deadline for online self-assessment tax returns is fast approaching.

"Forcing these firms to keep better records will benefit tax advisers, HMRC suggests in the paper, as poor book-keeping adds to advisers' admin burden," the news provider commented.

"The businesses will benefit from improved financial management which in turn will boost their chances of survival. Those seen to be fulfilling their obligations will likely have a lower chance of a subsequent compliance intervention from the taxman."

Posted by Jacob Williams