HMRC is running a trial in the north and Scotland which could change the way it runs its Business Record Check (BRC) activity. The change is designed to ensure that BRCs are targeted more effectively at those who are likely to have inadequate records and need help.

The BRC programme uses on-site visits to help small and medium-sized businesses (SMEs) to improve the standard of records they keep, which is meant to help them send correct returns to HMRC.

From 4 November 2013, HMRC's BRC activity in the Edinburgh, Glasgow, Leeds, Bradford and Stockport areas will explore new ways of using the checks, including risk processes. As part of this, HMRC will evaluate new risk processes and ensure new approaches are cost-effective and fit with its wider compliance activity.

HMRC will also work with tax agents' representatives to review the benchmarks for good record-keeping.

Businesses outside the targeted areas should expect HMRC to continue with the existing BRC process until they are completed.