Following a review, HMRC announced a fresh approach to its pilot BRC programme on 3 February 2012.
The review of the pilot programme, which included discussions with trade and professional bodies' representatives, found clear evidence that the programme was effective in improving record-keeping practices amongst SMEs. However, it recommended that the checks were better targeted in future, and linked to wider education and support activities. In order to implement the review's recommendations all new BRC activity was paused from 3 February to 31 October 2012 to allow HMRC to redesign the BRC process.
Read the full report of the Business Records Checks Review
Overview of new approach to BRC A new approach to BRC started on 1 November 2012. Customers who are more likely to be at risk of having inadequate records will be contacted by letter to arrange for HMRC to call them to go through a short questionnaire. Depending on the outcome of this call, HMRC will confirm to some customers that no further action is required. Where some issues are identified, customers will be offered targeted self- help education options. Customers who are assessed as being at risk of keeping inadequate records will be referred for a BRC visit.
HMRC develops a new approach to Business Records Checks
24 October 2013
HMRC are changing their Business Records Check activity to ensure it better targets help to those who are likely to have inadequate records.
HMRC Business Records Checks (BRCs) programme uses on-site visits to encourage customers to keep better records, and keep up to date.
The checks help and encourage small and medium-sized enterprises to improve the standard of records they keep. This then helps them to send correct returns to HMRC.
Customers whose records were not adequate on first inspection, and who received follow up visits, all improved their record-keeping standard. HMRC have not had to charge any penalties.
In the latest phase of BRC, many of the customers contacted by HMRC have been keeping records correctly. So HMRC wants to explore how to better target this activity.
From 4 November 2013, HMRC's BRC activity in the Edinburgh, Glasgow, Leeds, Bradford and Stockport areas will explore new ways of using the checks. As part of this, HMRC will evaluate new risk processes and ensure new approaches are cost-effective and fit with its wider compliance activity. HMRC will also work with tax agents’ representatives to review the benchmarks of what good record-keeping should be. Many tax agents already do much to improve their clients’ record keeping and HMRC wants to work with them to improve standards. For customers outside the development areas HMRC will continue with existing BRCs until they are completed. This means: if you have received a letter dated on or before 23 October 2013, HMRC will still contact you by telephone to ask you to complete an initial telephone questionnaire
CIPP Policy News Journal
16/04/2014, Page 471 of 519
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