Record checks - HMRC

Following a period of consultation, HMRC is proceeding with its plans to carry out spot checks on small businesses. The visits were not due to start until July 2011 but HMRC decided to introduce what it describes as a 'test and learn' trial.

However, following protests from some professional organisations, HMRC subsequently released a Briefing Paper explaining the status and extent of the Business Records Checks (BRC), which are already being undertaken in some parts of the country.

It confirms that HMRC is testing BRC in a limited way between 4 April and 15 July 2011, involving 30 HMRC staff in eight locations (Edinburgh, Irvine, Manchester, Liverpool, Stockport, Sunderland, Sheffield and Portsmouth). It estimates that around 1,200 businesses will be targeted during this initial phase of the programme.

HMRC said it has 'no intention' of charging penalties for record-keeping failures during this testing period, adding that it will continue to review its long-term planning around the introduction of such charges in the future.