The updated Business Risk Review (BRR+) process, for large businesses with a Customer Compliance Manager (CCM), came into force in October 2019. The intention remains to encourage taxpayers to adopt a lower risk approach to managing their UK tax affairs.
Alongside understanding the business’ landscape, the new regime focuses on evaluating risk in three key areas; Systems and Delivery, Internal Governance and Approach to Tax Compliance for each tax regime. The outcome of these reviews is ranked into one of four risk categories, according to the extent a business can demonstrate it meets certain low risk indicators.
Other changes to the process include:
A low risk rating brings peace of mind and confidence in your tax compliance. At the other end of the spectrum, the potential risks of getting things wrong include reputational risk and financial penalties, as well as the time cost of remediation and inevitable further scrutiny from HMRC.
With the world of tax compliance becoming ever more complex through increasing digitisation and regulatory requirements, HMRC’s expectations have also increased. Their sharper focus on tax governance, combined with growing external pressures and operational challenges in ensuring all tax obligations are fully satisfied is creating a more challenging environment for taxpayers. Taxpayers need to respond by determining whether they have the appropriate systems, processes and resources in place to deliver their tax obligations within a robust governance framework and effective control environment.
Whilst COVID-19 significantly reduced the number of BRR+ reviews there has recently been a significant increase in the number of meetings taking place, with many more being scheduled throughout the rest of the year.
Some of the key examples and experiences we have from supporting Groups through their BRR+ process include:
To meet HMRC’s changing requirements, Groups are implementing the latest generation of workflow technologies that allow tax risk monitoring to be embedded within workflow management. This allows risks to be linked to specific processes and controls within workflows, so that evidence of control delivery or failures are automatically captured in real-time.
Working with your business, we will draw on and share our experience to help you prepare for your BRR+ process. Our approach is collaborative giving you the flexibility to find the solution that’s right for your organisation. Specific examples of how we can help include: