The HRMC published a consultation paper on the 17th December 2010 outlining
their intention to concentrate on Business Record Checks. This proposal aims to assess the adequacy and accuracy of Business Records in the Small and Medium sized (SME) business sector (Small or Medium businesses are defined as having a turnover of less than €50 million and fewer than 250 employees.).
The checks are thought to begin in the latter part of 2011, with the HRMC expecting to carry out 50,000 reviews annually over a 4 year period.
If a business is found to be neglecting to keep and maintain their Records appropriately then they will be subject to a penalty. There have not been changes made to the maximum penalty that can be issued which remains at £3,000. The HMRC have stated that they do not propose to penalise for every failure to keep records appropriately but rather where there are significant record keeping failures. The HMRC intend to penalise at different levels depending on the severity and frequency of the failures.
The consultation period runs from the 17th December 2010 to 28th February 2011.
For more information on how the Business Record Checks may affect your business, visit HMRC website. Or speak to one of our experienced advisors at M. B. McGrady & Co.