HM Revenue & Customs piloted Business Records Checks earlier this year, carrying out checks on the adequacy of records of a sample of small and medium sized businesses.

The pilot study found that 44% of businesses visited had issues with accounting records and 12% had serious problems.

As a result of this, HM Revenue & Customs are now increasing the number of checks to cover several areas across the UK, including Scotland. They have also increased the size of businesses caught by the criteria for review from those employing 30 full time staff up to 120.

The aim is to complete 12,000 reviews by the end of the current financial year, with provisional plans for another 20,000 reviews to be done in the following year.

The Business Records Checks scheme is intended to ensure that all businesses maintain records that reflect their financial position with accuracy and ensure that they pay the correct amount of tax at the correct time. Businesses which are deemed to be maintaining inadequate records can be fined up to £3,000, depending upon the severity of the inadequacy.

Are you satisfied with your business records? Could they stand up to inspection by HM Revenue & Customs? Are you concerned? If so please contact Lynne Vaughan in Dundee (01382) 312140 or Scott Kennedy in Forfar (01307) 474274, alternatively e-mail info@amberaccounting.co.uk.