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Taxman eases up on small businesses

In a move that could save SMEs thousands of pounds in unwelcome fines, Her Majesty’s Revenue and Customs (HMRC) has announced it will put an end to stop checks for small businesses with regards to their up-to-date tax filing.

The 'Business Records Check' was introduced to help spot irregularities in company paper work and tax records, with a view to raising more money for the public purse. However, a review of the scheme found that it had raised far less money than planned, targeted the wrong firms and that it had destroyed the relationships between the taxman and small businesses.

But while the HMRC has called an end to the controversial scheme, the abandonment will only be temporary. According to sources, the scheme will be re-launched in the next financial year, although unannounced visits will no longer occur.

Instead, checks will be targeted at those companies which HMRC thinks are at risk of keeping inadequate records, and a fine will only be levied if the poor record keeping has already led to the company submitting an incorrect tax return.

In the meantime, SMEs have been advised to keep good tax records, and business groups hoping the scheme would be abolished entirely believe it still represents another unneeded pressure that SMEs don't need in difficult financial times.

If you're looking to build your business, or have been approached to sell your company, or require any other business health check then give us a call on 01908 660966 or 01604 828282. Alternatively you can fill out our online contact form. 

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