HMRC Record-keeping Guides Help Firms Organise Tax Paperwork
Small businesses can access free online information to help them improve their tax records, ahead of HM Revenue & Customs’ (HMRC) crackdown on business books later this year.
HMRC has launched four new products to help the self-employed and small businesses keep better records:
- a factsheet on how to keep records
- a guide to keeping records for tax returns, including common problems and examples for different types of business
- a guide to setting up a basic record-keeping system, with examples of spreadsheets
- an interactive checklist that tells businesses how well they are keeping records and how to improve them.
HMRC business customer unit acting director, Brian Redford, said that setting up a good system of record-keeping is time well spent for small firms.
“Get a proper system in place and you’ll not only be confident that you are paying the right tax, but you’ll keep up to date with how much you owe suppliers and how much you are owed. Later this year, HMRC will start a programme of Business Records Checks that will look at the adequacy and accuracy of business records in small firms.”
Businesses that don’t keep their tax records up to date risk paying a penalty of up to £3,000.
New payroll tool launched
Employers completing their employees’ PAYE forms can also download a new HMRC tool from the Business Link website, to replace the Employer CD-ROM.
HMRC’s Basic PAYE Tools is a computer software package that includes a database for firms to input their employees’ details, a P11 calculator that works out and records their employees’ tax, National Insurance contributions and student loan deductions, and a tool to help them file forms such as P45 and P35 directly online.
HMRC has also advised employers to sign up to receive free email alerts, to ensure they are informed of any other changes to the PAYE system.