HMRC Mount Pressure On SMEs Over Record Checks

Taxation experts have criticized HMRCs Business Record Checks for burdening businesses at a time when many are struggling. The checks, which are initially looking at 1,200 businesses, could see up to 50,000 SMEs’ tax records checked.

The concerns were raised by the Association of Taxation Technicians (ATT), with their president Simon Braidley saying that whilst good book keeping is clearly a good thing, they are apprehensive about a number of issues. He said;

“We are concerned that many of the HMRC staff who are carrying out the current round of checks do not have sufficient knowledge and experience to do this work and reach appropriate conclusions.”

As well as this, business who are considered to have adequate records could still be subjected to an enquiry; Mr Braidley added that businesses will not look upon an enquiry as an enjoyable experience and “the pressure is being stepped up on small firms from all angles.”

“These processes are in addition to the campaigns which HMRC are launching against specific business sectors. We have had campaigns in respect of offshore bank accounts, doctors and dentists and plumbers. Restaurants, freelance tutors and e-marketplace traders are also due to face additional checks aimed at tracking down tax evaders.”

“It could be a long hot summer for small businesses with HMRC breathing down their necks.”

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.