A probe into West firms’ business records has been launched today by HMRC with those not keeping proper financial records at risk of fines.
HMRC’s Business Records Checks (BRC) programme focuses on companies with an annual turnover below £30m which employ fewer than 250 people.
The West is the last region in the country to roll out the programme, which was launched in November to crack down on poor financial record keeping.
Business experts are warning firms to ensure they have all necessary records should they b
e contacted by the taxman.
Allister Weir, tax director at accountants Grant Thornton in the West, said: “Businesses need to keep adequate business records so they can complete their tax returns correctly.
“As part of this latest crackdown, SMEs (small and medium-sized enterprises) deemed more likely to be at risk of having inadequate records can expect to be contacted by HMRC by letter to arrange for a call to go through a short questionnaire.
“Depending on the outcome of the call there are three likely options – no further action, the offer of targeted self-help and education options, or a BRC visit for those that are assessed as being at risk of keeping inadequate records.
“Any traders who are not registered with HMRC or who have concerns that they may have understated the profits which they have declared should seek specialist advice and consider making a disclosure to HMRC, to reduce the chance of a potential prosecution and to bring down the amount of any penalties which may be due.”
