The following Personal Tax guidance note by Tolley in association with Guy Smith of inTAX Ltd provides comprehensive and up to date tax information covering:
Business record checks were relaunched in November 2012. This guidance note considers the previous regime, which was introduced in February 2011 and suspended in February 2012.
For details of the new business record checks programme, see the HMRC relaunches business records checks news item.
The business records checks (BRC) programme has proven to be one of the more controversial initiatives launched by HMRC in recent years, almost from the moment the consultation document invited feedback in December 2010.
HMRC wanted to test both the adequacy and accuracy of business records maintained by sole traders, partnerships and limited companies trading within the small and medium enterprise (SME) sector. HMRC considers SMEs to be those businesses with an annual turnover below £30 million and employ less than 250 people.
Falling back on its own internal research from random self assessment enquiries and studies conducted by the Organisation for Economic Cooperation and Development (OECD), HMRC justified the need for the programme by saying poor business record keeping was responsible for a loss of tax in up to two million SME cases annually.
Key objectives listed in the consultation document were to:
The consultation on the BRC programme was supposed to conclude
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