HMRC are changing their approach to Business Records Checks (BRCs) with the objective of ensuring better targeted guidance and assistance to those with inadequate records. The guidance for these checks has therefore been amended.

The HMRC BRCs programme uses on-site visits where records are reviewed to encourage better record keeping by taxpayers and SMEs with an overall aim of improving the standard of records kept and ensuring these are more regularily updated.

HMRC have advised that as a result of previous BRCs, taxpayers whose records were not adequate on first inspection, and who received follow up visits, all improved their record-keeping standard. HMRC did not have to charge any penalties subsequent to the initial visit.

From 4 November 2013, HMRC’s BRC activity in certain parts of the UK (Northern Ireland is not currently included) will explore new ways of using the checks. As part of this, HMRC will evaluate new risk processes whilst at the same time ensuring the new approaches fit with its wider compliance activity.

The updated guidance and more information on the above are available on the HMRC website.