In 2011/2012 the HMRC are planning to carry out up to 50,000 business records checks on small and medium sized businesses in the UK.
The purpose of these checks is to establish whether the record keeping and bookkeeping systems are adequate enough in the targetted businesses to be able to complete accurate tax returns, whether VAT, PAYE, Corporation tax or self assessment.
If you are picked at random to receive a visit from an HMRC officer you can expect a fairly informal review, lasting between 2 and 4 hours covering aspects of your bookkeeping such as the sales ledger, purchase ledger and bank reconciliation.
If you are not up to date with these then it could mean trouble for you. Potentially penalties with a maximum of £3,000 for poor record keeping but more importantly a more thorough tax inspection if it is proven that your record keeping does not allow you to accurately complete the relevant tax returns.
Applied Accountancy are able to assist you prepare for such a visit. Whether it be the presence at the meeting to liase with the officer on your behalf or to help get your records up to scratch prior to the meeting.