Britannia Radio

PwC: Tax Investigations Newsflash

Be prepared for HMRC's business record checks for small and medium businesses

HM Revenue and Customs (HMRC) has announced that it will carry out 50,000 business record checks across the population of small and medium sized enterprises in the UK over the next four years. The initiative will check records, in year, and impose penalties for significant record keeping failures. HMRC anticipate collecting £600m of extra revenue as a result. HMRC has identified that 40% of small and medium businesses have poor business records which in turn leads to a loss of tax. HMRC will use its inspection powers to identify these businesses and impose penalties of up to £3,000 for poor record keeping. Any businesses that receive a penalty as a result of a business check are likely to be subject to a full follow up enquiry. The business records checks are currently under consultation which ends on 28 February 2011. More information on how the Business record checks will be conducted will be published in March 2011. Please contact your local Tax Investigations contact to discuss how we can help your clients prepare for the new business record checks or to review their current record keeping procedures. Our tax investigations e-newsflashes bring key developments to your attention as they happen. If you would like to discuss anything covered by this newsflash or any tax investigation issue please call our 24 hour helpline on 0800 328 8215 or email tax.investigations@uk.pwc.com. Visit our website: www.tax-investigations.com.