An in depth examination of the debatable Business Record Check plan – whereby small companies may be penalised by up to £3,000 for having inadequate paperwork – has now begun, HMRC has declared.
Acknowledging “considerable concern” in regard to the spot-checking motivation, HMRC stated that it had begun a necessary review of BRC in discussion with the professional bodies that are criticising its execution. Even though the plan won’t be stopped, which means that the earlier announced preliminary trials are continuing, the majority of tax consultants say that the responsibility is with the Revenue to prove that BRCs are capable of “something sensible”.
Tax expert Nichola Ross-Martin explains that this is partly as a result of the tax bodies that are asked to consult presently enjoying ministerial assistance under a separate motivation to boost HMRC’s performance. However, it is additionally due to the fact that they feel that the BRC method isn’t the easiest way to assist small and medium sized companies in maintaining good data, which was the original purpose of the plan, advised the Institute of Chartered Accountants of England and Wales.
Its tax facility stated “We are concerned that HMRC may set unrealistic criteria for small business records and that BRCs will place a considerable compliance burden on SMEs and their advisers.”
A statement was released by the HMRC prior to the New Year where it publicly stated that it had not got everything correct, declaring the plan could have without a doubt “benefited from more detailed consultation at an earlier stage.”