Business records Check
HMRC
From 2011 , HMRC will visit 50,000 small and medium size businesses to check that the business records which are being kept are adequate for the purpose of preparing annual accounts for that business . The Inspector who checks the records will classify the records : green ( acceptable ) , amber ( improvement needed ) or red ( unacceptable ) . One concern is that a red classification will be used to identify cases for in depth investigation . The other concern is that the Inspector may go past checking the records by asking detailed questions about the business and the owner's private finances . This would be moving into the area of tax enquiry and goes beyond a records check . This why ,if you are notified that HMRC intend to check your business records , that you need an experienced tax advisor present to make sure that the Inspector does not exceed the remit . TICS can ensure that this does not happen . This is why , if you are notified that your business records are to be checked , that you need a qualified tax advisor to be present when the check takes place to ensure that the Inspector does not exceed his remit .
Submitted by Wade Hyde on Wednesday 31st August 2011