HMRC has published the findings of research into Business Records Checks (BRCs) and attitudes towards record keeping among the SME businesses, which found that small businesses want as little interaction as possible with the taxman and do not feel that a site visit from an HMRC visiting officer would help make their returns more accurate
It also appears that there needs to be better dialogue between SMEs and HMRC to make it clear about the purpose of the site visits. Although the BRC is perceived as a compliance check, customers were unclear about what was expected of them, as a result of little detail in any of the communications from or with HMRC.
One of the main problem areas identified by HMRC relates to the reporting of business and personal expenses by SMEs.
Currently, HMRC carries out BRCs for SMEs which it says are meant to ‘support SMEs before they have filed their tax return to ensure they get it right first time’. The scheme was launched in November 2012.
TNS BMRB was commissioned by HMRC to undertake research with customers that had experienced the BRC process. This research aimed to understand how HMRC can support businesses to provide accurate records, drawing on customer experiences from the BRC process and better understanding of current practices.
