HMRC picks on small firms...again


HMRC picks on small firms...again

According to the Association of Taxation Technicians, HMRC is showing an undue level of interest in small businesses. Indeed, HMRC apparently has plans to check the records of 50,000 small businesses during a six month trial period to ensure that they are 'adequate' for tax purposes.

Clearly good practice when it comes to book-keeping is good for everyone, but it appears, so say the ATT, that HMRC staff undertaking the checks don't have enough experience or knowledge to carry out these checks properly.

Even worse, where records are found to be adequate, the business could still be targeted for enquiry using HMRC's new Single Compliance Process. SCP is meant to be simpler and less drawn out as information is shared between HMRC and the taxpayer, but it's still not going to be a pleasant experience.

This was first published in July 2011

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