HMRC announced on 21 February 2011 that it intends to start checking that small businesses are keeping their business records up to date. The announcement follows HMRC’s consultation document issued on 17 December 2010 setting out its proposals on carrying out the checks.
There are four guides on:
* basic record keeping;
* keeping records for Tax Returns;
* examples of basic record keeping systems; and
* what records should be kept.
All the guides can be downloaded from HMRC’s website.
It is essential that people understand the record keeping requirements that apply to them. If HMRC finds something is wrong the person will have to pay the outstanding tax, interest and a tax geared penalty in most cases.