Interesting article in the Scotland on Sunday on HMRC’s power to inspect the tax records of small businesses.

HMRC has confirmed that it is proceeding with its programme to inspect the tax records of small businesses despite facing a barrage of criticism since a pilot was first announced in March.

The article questions whether HMRC has the power to impose a fine of up to £3,000 if  the tax records of a small business are not up to date.

I agree with the comment by Colin Borland of the Federation of Small Businesses in Scotland: “If businesses received guidance rather than fines the checks could be a positive move, but in their current form they were creating alarm among many small business.”

The article can be found here.