1,000 small and medium-sized enterprises (SMEs) have been chosen in HMRC’s first round of Business Records Checks (BRC).

The taxman is arranging visits to carry out checks on the records of small businesses. The visits were not due to start until July but HMRC has decided to introduce what it describes as a ‘test and learn’ trial.

In a briefing note, HMRC confirmed that it is testing BRC in a limited way between 4 April and 15 July 2011.

It estimates that around 1,200 businesses will be targeted during this initial phase of the programme.

Under the BRC programme, tax inspectors will have the power to impose fines of up to £3,000 for ‘record-keeping’ failures, although HMRC said it has ‘no intention’ of charging penalties during the testing period.

It is now important to ensure that your bookeeping passes the standard – call us if you need any advice.