Feeds

Taxmen extend biz record check pilot

Root around for extra SME revenue

High performance access to file storage

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.

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.