How to do a compliance check: records: introduction
FA08/SCH37 began the alignment of record-keeping requirements for
- income tax
- capital gains tax
- corporation tax
- direct taxes claims not included in a return, and
FA09/SCH50, which took effect from 1 April 2010, amended existing legislation to align the record-keeping rules for
- aggregates levy
- climate change levy
- landfill tax,
- insurance premium tax and
- stamp duty land tax.
F(no3)A10/SCH13, which from 1 April 2011, amends existing legislation in CEMA79/S118A to align the record-keeping rules for revenue traders. These changes affect the following duties:
- Tobacco Products Duty
- Alcoholic Liquor Duties
- Hydrocarbon Oil Duties
- Betting and Gaming Duties
- Air Passenger Duty.
The changes allow HMRC to
- make regulations to specify the records and supporting documents that either must or need not be kept
- reduce the period for which records must be kept in individual cases, and
- specify conditions and exceptions to the general rule that information instead of records may be preserved.
HMRC regards good record-keeping as essential because records underpin accurate notification and return of tax/duty liabilities and accurate claims. Research shows that poor record-keeping is a key factor in many incorrect returns.
See COG940000 for details of Business Records Checks.
Action to deal with non-compliance with record-keeping requirements is essential. Penalties should be used in appropriate circumstances to improve compliance. There is no change to the existing penalty regimes.