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Typical 15 Questions for Business records checks by HMRC

Could you please tell me what the 15 questions Business records checks by HMRC would be like? Im worried i may fail to answer HMRC questions properly and i want to prepare for the questions.

Comments (4)

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    admin

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    We have done several interviews with HMRC for the Business Records Checks for clients. Sometimes the call lasts 5 minutes to 20 minutes. The repeating questions that we get are noted below. However there is no need to worry. The idea is to keep good records, even with a visit from HMRC, there is no need to worry if you are keeping good records.
    Does the taxpayer understand their obligations to HMRC and take them seriously?
    Does taxpayer know what they need to do to meet their obligations?
    Does taxpayer need help understanding official forms/documents?
    When did client start trading?
    How many receipts in a month?
    How many of receipts are in cash?
    How many purchases in a month?
    How many of the purchases are in cash?
    How personal and business expenses are kept separate?
    How do you maintain accounting records?
    How often are the records maintained?
    Do you employ an accountant?
    How often do you records transactions?
    How long do you keep records?
    How do you work out capital allowances?

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  • Avatar

    matt

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    Hi,

    I have a Business Records Check coming up and am a little nervous at the thought of it.. I don’t use an accountant and have a very small business with little over 35k turnover. I believe there may have been some mistakes on my previous tax return.

    Just wanted to seek some advice and ask if there are more (aside from the above) typical questions being asked and how I can best prepare for this.

    Thanks!

    Reply

    • Avatar

      admin

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      Thanks for posting your question. There is no need to nervous. I know a number of people who escape review when their records are in shambles. Ofcourse you have done a good thing. We always advice clients to discuss the visit with an accountant as soon as you are notified by HMRC, don’t wait till HMRC calls or knock on the door. The best advice is to avoid a Business Records Check is to avoid one in the first place – Taxpayers with late or provisional tax returns or late tax payments are considered by HMRC to be more risky and therefore more likely to need a Business Records Check. However if you have already been notified of BRC then here are some tips on how businesses can prepare for a Business Records Check visit:

      1. Ensure your bookkeeping is up to date.
      2. Check your business records are organised and everything is there.
      3. If your using accounting software make sure all the records are accuate and up to date.
      4. Get an accountant to review your system for as little as £100, even if it is just for reassurance you have everything you need.
      5. Consider whether there are tasks that should be up to date like in your case – if there are any returns that are incorrect you have a process for identifying those and correcting them.

      Hope this helps

      Reply

  • Avatar

    Dave

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    Other typical Business Records Check ph1interview questions include:

    1. On a scale of 1 to 9, where 1 is ‘not at all’ and 9 means ‘completely’, to what extent do you understand your obligations to HMRC?
    2. On a scale of 1to 9, where 1means ‘never’ and 9 means ‘always’, to what extent do you need help understanding HMRC forms?
    3. How long have you been in business?
    4. How many business payments do you take in a month?
    5. Of those, how many are in cash?
    6. How often do you write up your business payments?
    7. How many business purchases do you make per month?
    8. Of those, how many are in cash?
    9. How often do you write up your business purchases?
    10. Can you tell from your record keeping which transactions are for business purposes and which are personal?
    11. On a scale of 1 – 9 (where 9 is 100%) I understand what I need to do to meet my obligations to HMRC
    12. On a scale of 1 – 9 (where 1 is not much) I often need help with official forms.
    13. How long have you been trading?
    14. How many sales invoices do you have each month?
    15. How many transactions are are paid in cash?
    16. How often do you update your sales records?
    17. How many expense invoices do you have each month?
    18. How often do you update your expense records?
    19. Do you have any expense payments that could be seen as part personal?

    Reply

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