By extrapolation, HMRC also publish within their background report the following table:

It is clear that HMRC, via their risk-based approach, will target SME businesses they perceive as ‘at risk of keeping inadequate records‘, because of the additional tax yield they estimate to collect over the next few years.

The HMRC site goes on to state:

“A new approach to BRC started on 1 November 2012. Customers who are more likely to be at risk of having inadequate records will be contacted by letter to arrange for HMRC to call them to go through a short questionnaire.”

All this activity is part of an attempt by HMRC to close the ‘Tax Gap‘.

Next steps:

If you feel that your business records might not be up to the standard HMRC would acknowledge as adequate or if you feel potentially at risk, please contact one of the CIMA team members to assist you in evaluating your records, systems and processes for keeping adequate business records.

In a future article we will look into which specific activities put you or your business at a higher risk of a Business Records Check audit from HMRC.

©2014 – 3resource

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