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Business Risk Review +

The Business Risk Review+ (BRR+) is undertaken by HMRC to evaluate the tax risk associated with a business. Its primary purpose is intended to provide HMRC with a comprehensive understanding of the tax risks associated by the business. However, it is a burdensome process for businesses as it requires time, money and dedication of significant resources.

Presently, the BRR+ procedure applies to large businesses, typically those with a UK turnover exceeding £200 million, smaller UK businesses within larger Groups, and businesses identified as complex or operating in intricate industries.

Administered by HMRC's Customer Compliance Managers (CCMs), Business Risk Review+ thoroughly assesses the business's tax compliance history, systems and controls, and approach to managing tax risk.

The outcome of the BRR+ is a risk rating that will determine the level of attention HMRC allocates to a business. A Low risk rating means that HMRC will conduct a review of the business every 3 years and a High risk rating determines that reviews are conducted annually. Clearly therefor a low risk rating is desirable given the onerous nature of the review process.

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Overview of the BRR+ Process:

The BRR+ process categorises large businesses into four risk levels: Low risk, Moderate risk, Moderate-High risk, and High risk.

It assesses businesses across three key categories:

Systems and Delivery: This will endeavour to understand how a business ensures that it’s systems and processes are suitable and sufficiently resourced to enable them to deliver the right tax at the right time whilst recognising and mitigating risks.

Governance: This endeavour is to understand the governance framework within which the openness and cooperation with HMRC.

Approach to Tax Compliance: This will seek to understand the business tax strategy and the structure of business interactions together with the transparency of their relationship with HMRC.

Properly preparing for a BRR+ offers several advantages

Reduced risk of audit: Businesses with a low risk rating are less likely to be audited by HMRC. This can save businesses time and money.
Increased understanding of tax risks: The BRR+ process helps businesses to identify and understand their tax risks. This knowledge can help businesses to take steps to mitigate their risks and reduce their chances of being audited by HMRC.
Improved tax compliance: The BRR+ process can help businesses to improve their tax compliance. This is because the process identifies areas where the business can improve its systems and controls.
Improved relationship with HMRC: The BRR+ process can help to improve the relationship between a business and HMRC. This is because the process is a collaborative one, where the business and HMRC work together to identify and mitigate tax risks.

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How We Can Assist

Friend Partnership can support you in preparing for your f BRR+ review. Our assistance encompasses:

Evaluating your risk category: We will evaluate your ability to address various BRR+ indicators and substantiate your responses. This assessment will enable us to determine your probable risk category.

Offering recommendations: We will furnish you with recommendations to better your risk category. These suggestions may encompass both quick-win strategies that can be promptly implemented and longer-term objectives.

Compiling an information package: We will guide you in assembling an information package designed for presentation to your Customer Compliance Manager (CCM). This package equips your CCM with the necessary insights to assess your risk level effectively.

Performance benchmarking: We will compare your current standing with that of other businesses of similar size, sector, and complexity. This comparison will highlight areas where you can better your risk management practices.

Establishing foundational governance: We can collaborate with you to establish the essential foundational governance required to support your compliance with tax obligations. Helping to develop policies and procedures, staff training, and the implementation of a robust risk management framework.

If you are looking for more information on how our services can assist your business in preparing for your next BRR+, download our full brochure. You can also contact us on 0121 633 2000, alternatively, email us at enquiries@friendllp.com

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