HM Revenue and Customs (HMRC) has now suspended its Business Record Checks (BRCs) programme while it carries out further consultation.
HMRC first launched the pilot scheme in April 2011 and has already checked the records of around 2,500 businesses, finding bookkeeping issues in 28 per cent of cases while 11 per cent required follow-up visits.
However, the programme came under heavy criticism amid claims that it was ‘heavy handed’ and increased the compliance burden on smaller businesses.
Keith Middleton, partner at George Hay said: “HMRC has now agreed to suspend the BRC scheme while it consults further with the aim of relaunching the programme early in the new tax year.
“Until then, however, we would advise all business owners to ensure that their records are in order to avoid being caught out when the checks resume. If in any doubt, it is always best to seek professional advice as soon as possible.”
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Source: Abbey Tax Protection news alert.