Firms warned over tax records

South Yorkshire businesses who fail to keep proper records to comply with tax regulations face checks and possible penalties, a specialist has warned.

Brian Gooch, of leading independent chartered accountants Hawsons, of Glossop Road, Sheffield, says that HM Revenue and Customs are concerned about the amount of tax they are losing through poor record keeping, particularly in the current economic climate, and are determined to use the powers at their disposal to improve the situation.

He adds: “HMRC estimate that 40 per cent of all SME-sized businesses may be falling short of the proper standards and now plan to check up to 50,000 SME business records annually, starting in the second half of 2011.

“They propose to impose penalties for significant record keeping failures as a means of bringing about an improvement in record keeping.”