CH211000 | How to do a compliance check: records: introduction

FA08/SCH37 began the alignment of record-keeping requirements for

• income tax

• capital gains tax

• corporation tax

• direct taxes claims not included in a return, and

• VAT.

FA09/SCH50, which took effect from 1 April 2010, amended existing legislation to align the record-keeping rules for

• aggregates levy

• climate change levy

• landfill tax,

• insurance premium tax and

• stamp duty land tax.

F(no3)A10/SCH13, which from 1 April 2011, amends existing legislation in CEMA79/S118A to align the record-keeping rules for revenue traders. These changes affect the following duties:

• Tobacco Products Duty

• Alcoholic Liquor Duties

• Hydrocarbon Oil Duties

• Betting and Gaming Duties

• Air Passenger Duty.

The changes allow HMRC to

• make regulations to specify the records and supporting documents that either must or need not be kept

• reduce the period for which records must be kept in individual cases, and

• specify conditions and exceptions to the general rule that information instead of records may be preserved.

HMRC regards good record-keeping as essential because records underpin accurate notification and return of tax/duty liabilities and accurate claims. Research shows that poor record-keeping is a key factor in many incorrect returns.

Action to deal with non-compliance with record-keeping requirements is essential. Penalties should be used in appropriate circumstances to improve compliance. There is no change to the existing penalty regimes.