HMRC has recently updated two more toolkits for 2017-18.

1. Business profits toolkit. The business profits toolkit sets out common areas of risk in relation to business profits for small and medium sized businesses. For example, the toolkit includes a useful reminder that only expenses that are wholly and exclusively
   incurred for the purposes of the trade or profession and those that are not capital in nature are allowable for tax purposes.
2. Capital v revenue expenditure toolkit. The capital v revenue expenditure toolkit sets out common areas of risk in relation to capital v revenue expenditure and can be useful to those completing an Income Tax Self Assessment tax return or Company Tax return.
   The toolkit covers the risk areas within capital v revenue expenditure including record keeping, acquisition, improvement and alteration of assets and corporate intangible assets.

HMRC Toolkits have been designed to provide information on previous risks that have been identified. It is hoped that this information will help accountants and agents identify the necessary checks that they can carry out. This in turn will assist taxpayers
in proving that they take reasonable care in completing their tax return. The use of the toolkits by accountants and agents is optional.

The toolkits are aimed at helping accountants and tax agents reduce the likelihood of mistakes in returns. Currently there are twenty toolkits available all of which will be updated at least annually.

Source: New feed