Free tools to help
SMEs get their business records ship shape were launched today by
HM Revenue & Customs (HMRC).
The four new products are suitable for the self employed, sole
traders and small businesses. They have been produced in advance
of the launch of HMRC’s new Business Record Checks programme later
this year, which will impose penalties for significant
record-keeping failures.
Brian Redford, HMRC’s Acting Director, Business Customer Unit, said:
“In these tough times, keeping good records makes sound business
sense.
“It may seem like a challenge, particularly when you’re starting
out, but keeping good records will bring real advantages to your
business. Get a proper system in place and you’ll not only be
confident that you are paying the right tax, but you’ll keep
up-to-date with how much you owe suppliers and how much you are
owed.
“Later this year, HMRC will start a programme of Business Records
Checks that will look at the adequacy and accuracy of business
records in SMEs to bring about a major improvement in the standard
of record-keeping. Now is the time to invest a bit of effort to
make sure your business records are perfect.”
There is something for everyone – from basic factsheets to online
tools:
* Keeping records for business - what you need to know: a basic
guide with a helpful list of where to get more information. www.hmrc.gov.uk/factsheet/record-keeping.pdf
* A general guide to keeping records for your tax return:
detailed guidance on record-keeping covering what type of records
you may have to keep, common problems and examples for different
types of business. www.hmrc.gov.uk/sa/rk-bk1.pdf
* Set up a basic record-keeping system: with examples of
spreadsheets and information about setting up a record-keeping
system. www.businesslink.gov.uk/recordkeeping
* Find out what records you should be keeping: looks at the
records you need to keep and assesses how well you are keeping
them. If you are thinking of starting business the tool provides
you with a checklist. If you are established it will give feedback
and advice on improvements you may need to make. www.businesslink.gov.uk/recordkeepingcheck
Notes for editors
1. A public
consultation document was published on 17 December 2010, with
proposals on how best to implement and carry out the Business
Record Checks. Read the plans on Business Records Check at: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&columns=1&id=HMCE_PROD1_030901
2. 40% of SMEs – 2 million businesses – do not keep adequate
records, even though they are legally bound to keep them, to make
sure they make a correct income tax or corporation tax self
assessment return.
3. Failure to take reasonable care in record-keeping leads to a
loss of around £6.5billion in tax every year.
4. Follow HMRC on Twitter at: @HMRCgovuk
NAT 10/11
Issued by HM Revenue & Customs Press Office
Press enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jan Marszewski
Phone: 020 7147 0798
jan.marszewski@hmrc.gsi.gov.uk