HMRC has announced it is going to abolish business records checks.
The Chartered Institute of Taxation (CIOT) has hailed this as a ‘victory for common sense’. Business record checks are a compliance procedure HMRC has used when it wants to confirm that a business is keeping sufficient information on its income and expenses to produce an accurate tax return. It has been criticised for being ineffective and poorly targeted. HMRC has stated that most small businesses keep accurate records anyway, without the checks.