HM Revenue & Customs (HMRC) have begun trialling Business Records Checks (BRCs) for small and medium businesses. The purpose of these checks according to HMRC is “to improve the record-keeping procedures of small and medium business customers”.
HMRC have stated that they will not charge penalties for record keeping failures during the trial.
It is clear that HMRC believe that records are not being adequately kept and will likely come down on this in the future. Now would therefore be an ideal time to ensure that businesses’ records are in order.
We feel that records for the payments of dividends is an area of weakness typically for owner managed business. If you would like assistance with this please call our Leeds office on 0113 2443502