Her Majesty’s Revenue and Customs has reviewed its Business Record Checks programme and plans to make changes to its approach as a result.
Starting in April last year, HMRC undertook a pilot programme of BRC’s which reviewed the adequacy and accuracy of business records within the SME sector.
Of the 2,437 checks that had been carried out up to 4th January 2012, 28% of businesses were found to have some issues with their record keeping, while an additional 11% had issues serious enough that a follow up visit was required. Of those businesses that required a follow up visit, 90% subsequently improved their record keeping.
HMRC has since reviewed their pilot programme, taking on the views of businesses and representative bodies, and will now postpone making any new BRC appointments until the revamped approach is launched in the 2013/13 financial year. One highlighted recommendation was that checks are more targeted in future, however further consultation will take place in the time leading up to the relaunch. Despite the postponement of the programme, the pilot showed clear evidence that the checks are effective in improving record keeping in smaller businesses.
It is important to note that HMRC will still be undertaking BRC’s already booked, in addition to follow up visits to businesses where inadequate records have previously been identified.
For more information, contact JOANNE COOPER on 0161 703 2500 or e-mail email@example.com