We’ve reported before that HMRC are cracking down on poor record keeping in SME’s. They have the right to levy fines up to £3,000 for businesses with serious record keeping failures. Mileage records can be an area of fault – just how do you prove an employee was in a particular place? Unfortunately it’s your responsibility to prove expenses are valid. There’s is no hard and fast rule to make your inspection go well but your chances will be improved if you keep the following records in order:
· Records of sales and takings
· Records of all purchases and expenses
· Accounting records
· Business records
· PAYE records
· Vat records
Good luck!