HMRC to clamp down on record keeping failures
HMRC is planning a programme to investigate 50,000 small and medium sized businesses this year for failing to keep proper records and for underpaying tax.
The ‘business records checks’ campaign will target the 40% of all 4.9 million businesses that HMRC said suffered from poor record keeping and where unpaid tax was likely to be due.
The department will use its existing powers to tackle 50,000 of the worst cases each year from the second half of this year, with penalties imposed for significant record keeping failures.
The programme will target businesses with a turnover of less than €50 million and fewer than 250 employees, and will typically be pre-return checks, taking half a day on average to complete.