Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
, see all updates

Supporting Guidance: business records checks: follow-up visits: statutory records inadequate

Where you find the statutory records are still inadequate, you should advise the customer at the meeting:

  • Of the facts and relevant extracts from the records on which you have based your view. These will be noted in your notebook.
  • That approval to issue the record keeping penalty of £value will now be sought, as the record-keeping improvements suggested at the initial visit have not been made. The customer will have a right of appeal against the penalty.
  • To adopt the appropriate record-keeping improvements you have suggested as a result of today’s check. These may be the same recommendations as those given at the first visit, or you may need to vary them to fit today’s findings of fact.

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

Before you issue record-keeping penalties, your manager must refer the case to the BRC Authorised Officer for review and authorisation, see COG941950. This need to seek central authorisation will be reviewed periodically.

Current year’s return (the next to be filed)

You should advise the customer that they will need to:

  • use best estimates to work out how much income is missing, before completing their Tax Return so that it does not show a shortfall in profits
  • be able to justify the figures and estimates they use
  • consider scaling back the figures if the previous returns have been based on similar inadequate records.

While you may suggest what needs to be estimated, and possible ways of doing this, the decision on what is done and how (if at all) rests with the customer.

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