HMRC to clamp down on record keeping failures

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Robert Lovell
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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.

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11th Jan 2011 09:23

fishing trips

There is no reason to suppose that poor record keeping (another phrase invented by HMRC) actually loses HMRC revenue. There is a 50/50 chance that tax can be overpaid. In fact any amounts paid in to a bank that cannot be identified are automatically treated as sales.

So just another go at SME's with a legalised fishing trip.

£600M over 4 years   your avin a giraff.

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11th Jan 2011 09:42

Dodgy Figures

If the government are going to investigate 50,000 small to medium size businesses per annum for four years, and given that the maximum penalty they can impose is £3,000. Then for them to bring in £600 million they would have to fine everyone the maximum £3,000. (50,000*4*3,000=600,000,000) Interesting!!!!

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