Are your Accounting Records up to Scratch?
Discussion
If not, prepare to be fined!
http://www.telegraph.co.uk/finance/yourbusiness/82...
So much for reducing the burden on small businesses.
http://www.telegraph.co.uk/finance/yourbusiness/82...
So much for reducing the burden on small businesses.
It has always been a legal requirement for ALL businesses (large or small) to keep good records of their trading activity. HMRC have always had the power to raise penalties on traders if they submitted inxccurate or misleading accounting information on theior Self Assessment tax returns
I don't see any real problem with this approach by HMRC. It is only those who submit trading accounts that don't look "right" who will be in danger of "investigation".
I don't see any real problem with this approach by HMRC. It is only those who submit trading accounts that don't look "right" who will be in danger of "investigation".
Hiya
I don't see the problem here either - it's well known for those in or considering going into business you must do proper accounting - after all it's central to any business operation, you simply MUST know what's coming in, and going out. The HMRC are cracking down on the worst offenders or lazy ones in this respect, trimming the fat you could say. If small business owners in this bracket who keep failing to keep adequate records are prodded this way then longer term it should be a good thing. If they continue to have poor accounting records, then let them go out of business.
I used to work at a software house who provided a very well known small business accounting software package, I did my time as 2nd/3rd line support and frankly it was shocking to hear and see some of the 'lazier' or 'haphazard' clients accounting practices out there. 90%+ were fine, but the 10% or so who'd ring up at 445pm the day they're meant to have their returns done or have records ready for their accountant etc and needed to do x or y was an eye opener!
Cheers, Dennis!
I don't see the problem here either - it's well known for those in or considering going into business you must do proper accounting - after all it's central to any business operation, you simply MUST know what's coming in, and going out. The HMRC are cracking down on the worst offenders or lazy ones in this respect, trimming the fat you could say. If small business owners in this bracket who keep failing to keep adequate records are prodded this way then longer term it should be a good thing. If they continue to have poor accounting records, then let them go out of business.
I used to work at a software house who provided a very well known small business accounting software package, I did my time as 2nd/3rd line support and frankly it was shocking to hear and see some of the 'lazier' or 'haphazard' clients accounting practices out there. 90%+ were fine, but the 10% or so who'd ring up at 445pm the day they're meant to have their returns done or have records ready for their accountant etc and needed to do x or y was an eye opener!
Cheers, Dennis!
jon- said:
Rule 1 of small business: Don't f
k with HMRC.
A friend is a 'power seller' on E-bay. HMRC recently ran a campaign targeting e-bay sellers, his records consisted of scraps of paper and receipts stuffed in a carrier bag. HMRC assessed him for six grand unpaid tax. k with HMRC.The carrier bag was handed to an accountant, who, eventually, proved that the business had actually made a loss. The tax refunds in subsequent years covered the accountant's fees many time over.
Rule 2 of small business, keep proper accounts.
Gassing Station | Business | Top of Page | What's New | My Stuff