Hmrc never ask for records. There is no assessment in the world that can cover food wastage, or business acumen. You can be the most wasteful useless businessman in the world and nobody could prove different. Also, most fish and chip shop suppliers will supply without invoice or records for cash payment...
So your point is invalid I'm afraid.
I do beg to differ, and I think it is disingenuous for you to suggest that there is little to worry about regarding poor or missing record keeping.
One has to be so careful where HMRC are concerned, as they do have extensive powers of investigation.
Whilst it looks like business sector profiles have been removed at some time since I last looked (a few years ago, admittedly) they still publish a fair bit of information on their investigative procedures under this index link:
http://hmrc.gov.uk/manuals/emmanual/index.htm
Although a significant amount of 'sensitive' information has been redacted, anyone looking at the published text who has more than a smidgen of a brain will acknowledge from HMRC's very own published manuals that they can and to ask for records where appropriate based on their unpublished 'risk profile'.
I appreciate that you are in the business and you state that "you can be the most wasteful useless businessman in the world and nobody could prove different. Also, most fish and chip shop suppliers will supply without invoice or records for cash payment..." and I have no disagreement with this.
However, provided that a business owner can demonstrate
through the records kept incompetency or poor decision making, then they are home and dry. It is where records are poor or lacking that allows HMRC to make assumptions that are based on business and sector ratios - and unless the OP can refute these - a significant tax bill in the form of an assessment will follow as sure and night follows day.
The bad record keeping then provides for a double whammy: a business already is making reduced profits, or even a loss, thus reducing the income available for the owner, then has to pay tax on profits that were never there in the first place. As an example,
Business turnover £500K, net profit after all expenses is a a measly £5K. Inspector feels that £50K is a truer figure and issues an assessment at £10K underpaid tax and VAT. Unless the inspector is right, it means that unless the business profitability improves, the owner will be working the next two year with no income at all!