Following HMRC's pilot of the new Business Risk Review (“BRR”) process HMRC have now finalised the low risk indicators that will be used and released a FAQs sheet confirming go live from 1 October 2019. Any BRR after this date will follow the new process. There have only been limited changes to the low risk indicators since the pilot with the low risk indicator wording adjusting only slightly. The Tax Compliance Risk Management manual which is the externally available guidance on the BRR process will be updated shortly ready for the launch on 1 October.
What are the key changes.
What are the potential impacts?
The new process represents a raised level of expectation from HMRC, resulting in additional challenges for those managing the organisation's tax affairs. It will determine the nature, extent and tone of interactions with HMRC over the next review cycle and is likely to attract greater internal scrutiny from senior stakeholders in the organisation such as the SAO and the Audit Committee.
Next steps for taxpayers