Pictured above: Steve Rogers, Director & Head of
Accounts & Business Services
Dains, Midlands based Chartered Accountants and Business
Advisers are warning that around 50,000 small businesses are set to
be targeted annually by HM Revenue and Customs (HMRC) amid concerns
that their book-keeping is not up to scratch.
HMRC is targeting firms which it believes have underpaid tax
because they have not kept the correct records, with fines of up to
£3,000 in the pipeline for firms where HMRC finds significant
problems.
Its aim is to improve record-keeping in the 40 per cent of small
firms where it believes procedures are currently inadequate.
Steve Rogers, Director at Dains said "The 2008 Finance Act
gave HMRC the power to investigate business records - a process
which will begin in the second half of 2011 for up to 50,000 small
businesses each year.".
"Between now and the end of February, HMRC is consulting on how
to implement the proposals and the exact nature of the penalty
regime".
HMRC has said that forcing smaller firms to keep better records
would benefit them in the long term, as it would improve their
wider financial management and reduce the chance of a compliance
inspection.