June 2011 – HMRC Launches Checks Early

In our last newsletter we advised that it was the intention of HMRC to start checking on the adequacy of accounting records being maintained by all businesses.

The consultation period finished on 23 March 2011.The consultation document indicated that checks would commence in July 2011. Much to everyone’s surprise pilot schemes have been launched already with the probability that some 1,800 businesses will be targeted.

The speed with which HMRC has acted is indicative of an increase in the penalty regime for non-compliance. In other words, HMRC is hoping to take more and more in financial penalties from an already struggling business community.

Whilst “cloud” accounting is being widely advertised you have to consider how effective it would be in the event of an investigation by HMRC.

All the records we maintain are tailored exactly to our clients’ needs and comply with the requirements of HMRC. Worksheets can be made available to clients at any time via email.