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Small Firms Face Fines for Poor Book-keeping
7th February, 2011
Smailes Goldie Chartered Accountants, in Hull and Barton-upon-Humber, are warning that around 50,000 small businesses are set to be targeted annually by HM Revenue and Customs (HMRC) amid concerns that their book-keeping is not up to scratch.
HMRC is targeting firms which it believes have underpaid tax because they have not kept the correct records, with fines of up to £3,000 in the pipeline for firms where HMRC finds significant problems.
Its aim is to improve record-keeping in the 40 per cent of small firms where it believes procedures are currently inadequate.
Nicki Shipley, Partner at Smailes Goldie, said:
"The 2008 Finance Act gave HMRC the power to investigate business records – a process which will begin in the second half of 2011 for up to 50,000 small businesses each year.
"Between now and the end of February, HMRC is consulting on how to implement the proposals and the exact nature of the penalty regime."
HMRC has said that forcing smaller firms to keep better records would benefit them in the long term, as it would improve their wider financial management and reduce the chance of a compliance inspection.
For more information, or advice on how to improve your book-keeping procedures, please contact Smailes Goldie Chartered Accountants on Hull 01482 326916 or Barton 01652 632927.
