Feeds

Taxmen extend biz record check pilot

Root around for extra SME revenue

The Essential Guide to IT Transformation

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.

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?