Business Records Check
Important Message from Tuchbands- Leading North London Accountants
This starts with a letter from HMRC writing to say that they intend to make a phone call to ask some questions concerning the record keeping. At the end of the call they then decide whether the answers given show that the records are adequate. If they have any concerns then they will arrange a visit.
They follow a risk based approach using a set of pre-prepared questions.
I understand that sometimes HMRC wants so speak to the taxpayer but we have had a recent instance where they were perfectly happy for us to speak to them and answer their questions. In all cases, I would suggest at least a conference call so that we are present during the call. We would certainly want to be there during any follow-up visit.
The questions asked are those such as the number of monthly transactions; how frequently the records of income and expenditure records are updated, for example, daily, weekly etc; how much cash is taken or used for expenses; whether personal records are kept separate from business records.
If you receive a Business Records Check notice call us immediately.
Written by Philip Woolfson
Philip is a Senior Partner of Tuchbands, the leading firm of North London accountants based in Golders Green. Philip has handled accounts and taxation for a wide range of industries, from property investment through to the fashion industry and in his 35 years has helped hundreds of businesses to thrive in both rising and falling markets.