New Business Risk Review (BRR) process in place from 1 October 2019

Tue 15 Oct 2019

HMRC has updated its business risk review guidance to deal with the new expanded category assessment that applies from 1 October 2019.

The BRR is the process by which HMRC evaluates and discusses with a large business where it thinks they sit on the compliance spectrum and in particular whether they meet the criteria for Low Risk. It is based on the principle that, while factors such as the size and complexity of a business create their own risks and can make it more challenging for businesses to comply with their tax obligations, even the largest and most complex businesses can be classified as Low Risk if they mitigate these risks to an acceptable level through their behaviours.

The greater the level of risk perceived by HMRC, the greater the level of intervention that is likely. If a business is categorised as ‘low risk’, there will likely be a BRR assessment every three years. If a business is not low risk, it will have a BRR assessment every year. The three other categories of risk (moderate, moderate to high and high) will inform how HMRC approaches its intervention and investigation responsibilities.

The three other categories of risk (moderate, moderate to high and high) will inform how HMRC approaches its intervention and investigation responsibilities. For further assistance in managing large business tax compliance or dealing with HMRC interventions, please get in touch with a member of the Mazars corporate tax or tax investigation teams.