HMRC to educate traders

Posted: 16th May 2012

Following widespread criticism of the 'Business Record Checks (BRC)' regime, HM Revenue and Customs (HMRC) has discontinued it and is designing a new approach based on helping traders keep better records.
After carrying out 2,500 BRC visits, HMRC found that 40 per cent of traders had inadequacies and 11 per cent serious inadequacies in their record-keeping.
The new approach will concentrate on helping traders improve their record-keeping through education and will institute follow-up visits for traders who are identified as having poor records to ensure that they comply in future. Those that still do not may face a sanction of up to £3,000 under the BRC regime.
HMRC originally claimed that the BRC regime would raise £600 million in tax, but it is now thought unlikely to raise more than a quarter of that sum.