New BR

NEW STYLE BUSINESS RECORDS CHECKS

 

You might remember that HMRC started a series of Business Record Checks (“BRC”) last year. These were supposedly not to catch businesses out but were to assist them in meeting their record keeping obligations and to identify ways to improve them where needed. I’m sure that the fact that HMRC could fine you £3,000 if they thought your records were not adequate didn’t enter into it, or the fact that HMRC planned 50,000 such visits and that 50,000 time £3,000 magically came to the £150 million that they announced they planned to raise through the visits!

 

After a trial period, HMRC abandoned the BRC’s. Surprisingly HMRC found that where accountants were involved, they encountered fewer problems with the records.

 

Details are now starting to emerge that HMRC are planning to recommence the Business Record Checks, but with a slight twist. Now the new approach to arranging a BRC is:

 

1.      HMRC will write to you telling you that he wants to visit to check your records

2.      HMRC might call us to tell us

3.      If you do not reply to HMRC’s letter, then HMRC will call you to arrange the visit

 

The cynical amongst us will question how cutting your accountant out of the loop will help HMRC achieve its objectives of helping your business achieve its record keeping obligations!

 

If you do get a letter from HMRC about a BRC, please tell us immediately!!