Anger at tax record spot check plans
Business leaders and Tory MPs criticised the project to inspect up to 20,000 firms from April to check they can back up their tax returns with paperwork going back years.
Those unable to do so face fines of up to £3,000, creating additional difficulties for small businesses at a time when many are already facing the prospect of insolvency.
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Hide AdJohn Walker, national chairman of the Federation of Small Businesses (FSB), told The Independent: “Despite the worsening economy, HMRC is launching this scheme regardless of the consequences.
“We have spoken to HMRC and expressed our concerns a number of times. But as far as they and ministers are concerned it is a policy aim to make this happen.
“There is a huge difference between the rhetoric of the Government about helping small businesses and what it is doing in reality.”
The business records checks projects, which was piloted last year, also attracted criticism from Conservative backbenchers who pointed out that HMRC had recently let banking giant Goldman Sachs off part of its tax bill.
An HMRC spokesman said: “HMRC has started a detailed review of the Business Records Checks (BRC) project.
“Final decisions will be made by HMRC before the end of the current financial year.”