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HMRC internal manual

Enquiry Manual

Examining Accounts: Records Examination - Planning: Importance

Examining the business records necessarily involves learning much about the business. A properly conducted examination of the business records will indicate whether all the work that the accountant has done is accurate and whether the profits have been understated. The records will also provide evidence of the underlying behaviour including whether there has been any attempt to deliberately evade tax.

HMRC accountants are always available to provide advice on problems encountered when you are examining the records or accounts. If a result of your records examination you become suspicious of evasion you must refer the case to the Evasion Management Team.

Details about how to contact an HMRC accountant can be found on the HMRC accountant’s intranet page.

Before you begin your examination of the business records you must plan what you intend to examine and to record what you find, see EM2908. A record of what you plan to examine must either be recorded in Caseflow or as a separate intervention plan using the appropriate template.

You should maintain all electronic records/documents in accordance with Better Management of Electronic Information (BMoEI) guidance.