HMRC Business Records Checks
Initial feedback from the first trial checks carried out by HMRC on business records indicate that they are looking at:
- the frequency with which accounting records are written up
- the quality of any business mileage records
- sequential numbering of sales invoices
- a record of drawings for the self-employed
As these initial checks on tax payers’ records were carried out on a trial basis no mention of penalties was made.
Follow up letters sent out to the business proprietor indicated that HMRC may check again within three months to see if their recommendations had been followed.