Since April 2009, HMRC have had new powers to inspect business records

Since April 2009, HMRC have had new powers to inspect business records, and there are new penalties for failing to keep proper records. Now they have announced a trial of a new ‘all in one’ approach to carrying out their checks – they will look at all the taxes together, rather than possibly starting with a PAYE enquiry and moving on through VAT to corporation tax.

They say that this ‘will improve customer experience and reduce costs as the check will only take as long as the risks and behaviours encountered dictate’. Being visited by HMRC is never likely to be a pleasant experience, but it will be a lot less pleasant if they consider that the ‘risks and behaviours’ justify an in-depth enquiry. It will be crucial to show that the business is doing its best to comply with its obligations, and is succeeding.

The trial of the new approach is running for 6 months in 10 different locations in the UK.The results will be used to fine-tune the approach, and it will then be rolled out everywhere from January 2012. If you are notified of an inspection – whether as part of the new trial or any other HMRC procedure – we are here to help and advise you.