A podcast by Revenue and Customs introducing the new compliance checks regime for taxes like PAYE income tax, and eventually national insurance, has gone live. The eight-minute download is aimed at advisors and small businesses wondering how HMRC’s regime of checks, safeguards, penalties and powers will change on April 1st. It outlines the new time limit for tax assessments and cites record-keeping requirements, which will be universal, as will new rules for HMRC’s inspectors.
However, the Revenue’s Simon Norries said the record-keeping framework will emphasis retaining records that allow an accurate return per individual business. The podcast illustrates his pledge that HMRC will “do a lot more” so individuals and businesses understand their rights and obligations when it makes compliance checks. It will be complemented at the end of March, when the Revenue will openly publish the guidance its staff will be issued on how to apply the new practices and powers.
In its current internet message, HMRC dismissed reports that its officials can automatically enter a private residence, unless they are invited or have a warrant. Where a private home is used for business, HMRC said it can inspect the home’s business aspects “if it’s reasonable to do so,” like checking stock to work out tax due. Norries said that if all a company owner does is write up their records at home, “then that’s not reason enough” to enter the home. Instead, the records would be sent to HMRC.
