HMRC check could be coming your way

Charities could be randomly selected as part of a new HMRC announcement to carry out 50,000 business record checks over the next four years. The initiative will check records and impose penalties for significant record keeping failures. It is anticipated that £600m of extra revenue will be generated by HMRC as a result.

It comes after statistics show 40% of small and medium businesses, including not for profit organisations, have poor business records which lead to incorrect tax being paid. Any charity found with inaccurate records will face penalties of up to £3,000 plus a full follow up enquiry.

The business records checks are currently under consultation and full information on how the checks will be conducted will be published in March 2011.

Edward Parker of Wellers Accountants comments: “We expect the checks to start in the latter part of 2011 and so it’s advisable to contact your accountant now to review your current record keeping procedures. Charities are required to keep the same level of records as businesses and so it is vital that charities ensure that they have the appropriate insurance cover in place to protect against the professional costs of dealing with such an enquiry as they can be considerable.”

Visit www.wellersaccountants.co.uk for more information and advice.

Remember me

Forgotten password?