Feeds

Taxmen extend biz record check pilot

Root around for extra SME revenue

Boost IT visibility and business value

More small and medium businesses (SMB) will have their records scrutinised by HM Revenue & Customs (HMRC) as its record-checking programme has been extended.

However, penalties for inadequate records will only be issued in the most extreme cases until the process is refined. Full guidance will be issued before penalties of up to £3,000 for serious record-keeping inadequacies will be charged, HMRC said.

HMRC's Business Records Checks programme was piloted in eight towns and cities across the UK earlier this year including Edinburgh, Liverpool and Manchester. It involves checks on adequacy of the records of small and medium-sized businesses.

The pilot programme turned up errors in the record keeping of around 44 per cent of businesses, according to HMRC figures. 12 per cent of companies visited had "seriously inadequate" records.

HMRC plans to complete 12,000 checks before the end of the current financial year and will decide whether to extend the programme nationally in 2012.

Richard Summersgill, HMRC's Director of Local Compliance, said the exercise was intended to support businesses and reduce the "tax gap" in the UK.

The tax gap is the difference between the tax that in theory should be collected by HMRC and the amount that is actually collected.

HMRC recently announced a tax gap of around £35bn for financial year 2009-10. This figure represents 7.9 per cent of liabilities – slightly less than in 2008-09 when it was 8.1 per cent, according to HMRC figures.

"Good record-keeping helps businesses pay the right amount of tax at the right time, thereby potentially avoiding interest and penalties. Adequate records give businesses a clear idea of their trading position and profitability, allowing them to make business decisions and adjustments to ensure survival and success," Summersgill said. ®

Copyright © 2011, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?