skip to navigationskip to main content

HMRC business records checks scrapped

Newsletter issue - November 2015.

HMRC have announced that they have scrapped their compliance procedure known as 'business record checks' (BRCs) with immediate effect. However, businesses should be warned that keeping good records is still essential to enable them to produce accurate accounts and tax returns.

Broadly, BRCs were introduced in 2011 and used by HMRC to confirm that a business was keeping sufficient information on its income and expenses to produce an accurate tax return. The checks have, however, consistently been criticised for being ineffective and poorly targeted.

HMRC have acknowledged that the initiative has not proved a cost-effective way of achieving the desired result. Despite efforts by HMRC to identify businesses at 'high risk' of having inadequate records, most of those they called on were found to be keeping records to an acceptable standard. The evidence is that records are being kept to an appropriate standard by most small businesses in the UK.

It remains crucial for businesses of all sizes to keep records up to date and in good order. This is likely to become even more important as HMRC bring in digital tax accounts, which may require businesses to submit data more frequently.

Working with you

Whether you're starting from scratch or have been in business for years you'll benefit from working with Williams & Co advice on how to take you to the next level.

fixed-quote-man.jpg

About us

We work closely with our clients and act for a broad range of business....

business-advice-couple.jpg

Get in touch

Simple way to contact us. Just fill in a simple form.

free-consultation-couple.jpg

Our services

Find out details about what we can do
for you.

xero