SMALL and medium sized businesses around Peterborough need to brace themselves for a blitz on their business records by HM Customs and Revenue, according to a city tax specialist.
Ken Craig, a tax specialist at Rawlinsons, told Peterborough Business that HMRC are planning to carry out 50,000 checks nationwide every year for the next four years on the adequacy and accuracy of company business records.
Mr Craig said, “This programme of checks is being accompanied by a tariff-based penalty regime for failure to keep proper business records. The maximum penalty for transgressors is £3,000. It is highly likely that businesses found to be wanting with their records could end up being given a thorough tax investigation by HMRC. It would be wise for businesses to check their tax investigation insurance policies to make sure they cover Business Record Checks and subsequent investigations by HMRC.”
An HMRC consultation paper was published last month with comments required by February 28 – although Mr Craig believes it is virtually certain that the process will go ahead.