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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: business records checks: at the visit: during the visit

The purpose of the Business Records Checks (BRC) visit is to confirm that the customer’s records form an ‘adequate’ record of business receipts and expenditure. The visit is not intended to check the accuracy of the figures or to give the customer’s tax returns a clean bill of health.

During the BRC visit you are entitled to see the statutory records of the business. The meeting will enable you to:

  • obtain factual information from the customer about the business and the record-keeping process including:

    • the background and nature of the business
    • how the business is organised
    • who does what within the business, in terms of record keeping, and
    • the flow of business receipts and expenditure through the records
  • review a sample of the current statutory business records, those for the 3 to 4 months to the date of the visit, and clarify any points arising
  • form a judgement as to whether the records appear to be adequate or not.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Where you consider the records to be inadequate you should give the customer the facts on which you have based your judgement. Occasionally, it may, be appropriate for you to consult your manager before discussing with the customer your view of the adequacy of the records.

You must advise the customer of any follow-up action you consider appropriate.

Where the customer refuses a meeting you may need to gather the relevant facts by correspondence before you review the statutory records.

If the customer does not reply to an informal request for information, then you should seek you manager’s approval to issue an information notice, see COG941840.