Business record checks re-introduced

Make 2013 the year you resolve to get your business records in order. That’s the message from Peterborough accountants Rawlinsons in light of the reintroduction of the government’s Business Record Checks initiative.

The scheme began two years ago but was paused after concerns were raised. Following an overhaul of the process, businesses HMRC believe may have inadequate records are now being targeted.

According to Rawlinsons, based in Lincoln Road, some city businesses may be contacted.

Partner Ken Craig said: ”The initiative was first introduced back in January 2011 with the intention of visiting 50,000 small businesses across the country. A number of accountants and professional bodies weren’t very comfortable with some elements of the processes and the checks were halted.

“Following an overhaul the checks have now been reintroduced. HMRC is assuring us that they will be better targeted and linked to wider education and support so businesses where changes are necessary will receive the help required.”

The process now begins with a letter being sent to businesses HMRC believes may have inadequate business records. Ken believes the emphasis will be on cash businesses. Business owners will then receive a phone call to discuss the records they keep.

“If any of our clients receive this call we will advise them to refer HMRC directly to us at that stage, as their accountants,” said Ken. “Giving HMRC incorrect information, or information that could be incorrectly interpreted could create on-going difficulties.”

From information gathered during the phone call, the HMRC officer will assess whether ‘tailored educational support’ and a follow up visit is necessary. Further checks will be made three months later if necessary. It is only then that businesses which are failing to comply risk becoming liable for a penalty.

“This does feel like a process which will ensure expertise is targeted in the right places and the companies which need help will receive it,” said Ken. “This is an area we are able to review with our clients in an effort to ensure HMRC are satisfied with the responses they receive during the initial phone conversation – and maybe something other companies can look at as their new year resolution!”