HMRC’s extension to Business Record Checks programme

The BRC programme was piloted earlier this year in eight areas across the country. HMRC found that around 44% of businesses visited “had issues with their record-keeping”. Some 12% of those visited had “seriously inadequate records”.

Andrew Shaw, Personal Tax partner, comments: "HMRC are putting their money where their mouth is by ploughing a significant amount of resources into these checks. In doing so, the message to SMEs is very clear: they must maintain their records to a standard such that the tax returns they make will be much more reliable.”

He continues: “But this is still only the second phase of the pilot scheme. In early 2012, HMRC will be making their final decision on a national roll out of the scheme. Once this commences, it’s open season on penalties of up to £3,000 for inadequate record-keeping in serious cases. Business owners have been warned!”