A HMRC proposal indicates that 50,000 SMEs could be investigated during the second half of 2011 under its “Business Records Checks” initiative, which will target organisations who hold poor trading records, dating back over the past six years.
The investigations will focus on organisations with fewer than 250 employees and a turnover of less than €50 million. It will typically take half a day to complete the review of company records which will include cheque stubs, till rolls/sales records, plus bank and credit card statements.
Penalties will be imposed for significant record keeping failures which could see fines up to £3,000; SMEs may also be exposed to formal tax enquiries as a result. The scheme aims to raise £600 million in additional revenue over the next four years for the taxman.
There are a number of records you need to keep, dependent on your business size, sector and the different taxes that you have to pay, collect or charge.Contact the Evans Entwistle team to request our handy record keeping checklist.