HMRC to suspend SME visits and outlines more targeted approach

HM Revenue & Customs (HMRC) is set to suspend record checks on small businesses following an internal review which recommended an overhaul of its current approach.

An internal HMRC report on business record checks (BRCs) recommended more ‘targeted compliance interventions’ focused on the least complaint business sectors.

This is set to include a number of leverage exercises aimed at businesses expected to be at a higher risk of inadequate record keeping.

The report recommended HMRC’s BRCs focus on:

• Sectors which have traditionally been found to have inadequate records (cash businesses, tradesmen, public houses and so on)
• A particular post-code or set of post-codes
• Businesses which might be approaching a key event in the business life-cycle
• Those identified by the current most-successful risk profile for BRC visits Businesses which have been identified for an HMRC campaign approach, but were considered too small to necessitate the more intensive campaign interventions

The report said: 'We consider that there is a need for some intensive work immediately following this review to drive through some of the major changes needed. We think there is a need to temporarily suspend BRC visits while this initial work is done - restricting visits to the remaining follow-up visits and any visits already booked.'