HM Revenue and Customs signalled last year that it was going to use its new powers to examine the quality of records kept by businesses. This has now started, and records are been examined for the current tax year. Businesses are being asked for full details of invoices, receipts, expenses, and correlating information such as diaries. ‘Holes’ will obviously be treat as missing taxable income.
It is expected that such enquiries will be more unforgiving than in the past.
Poor record keeping simply hands a loaded weapon to an HMRC Enquiry Inspector and is unnecessary. If you would like a review of your accounting procedures to combat the new HMRC approach, please contact Victoria.