Feeds

Taxmen extend biz record check pilot

Root around for extra SME revenue

Security for virtualized datacentres

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.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
DVLA website GOES TITSUP on day paper car tax discs retire
Welcome to GOV.UK - digital by de ... FAULT
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.