Following criticism that the scheme unfairly targets small businesses, the HMRC announced that they would review the procedure, saying: “HMRC recognize that the launch of the BRC pilots has caused considerable concern to the tax profession and that the project would have benefited from more detailed consultation with tax professionals at an earlier stage.
“In the light of these concerns, HMRC will undertake a strategic review of the project in consultation with the professional and representative bodies.
“The purpose of the review is to consider the overall aims of BRCs, examine whether the current approach is the best way of achieving the policy objectives and identify what changes are needed to ensure that the objectives are achieved."
But, despite carrying out a review, the HMRC added: “In the meantime HMRC will continue with a limited number of BRC pilots and the results of them will be evaluated as part of the review.”
The Business Records Checks (BRCs) scheme was launched last year, and targets small businesses, as it is felt by the Government that this is a high risk sector in terms of non-compliance. As such, the scheme allows tax inspectors to visit business premises to ensure that adequate records have been kept to support income declarations and expenses claims.
For more information, please visit www.milsted-langdon.co.uk
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