HM Revenue + Local Compliance

greenflamingo_2

Could someone please help me on this one? This morning I received a letter from "Local Compliance, HM Revenue and Customs". It is a questionnaire asking for all my details over the past 6 years (this bit being altered by them in pen); it seems to be worded as though they are trying to find out whether I am running a business. I cannot understand why I received this as I am salaried employee and not a company director etc.

There is a section asking for details of "other income" i.e. "renting a house/land, untaxed interest, disposal of assets, commission, casual earnings or on a self employed basis".

I am not sure what "disposal of assets" means; what is an asset?
or "casual earnings"?

In fact I am not sure why they are asking me for details of any of this at all. I have sold a few things on Ebay on behalf of my father in law (such as stairlift, furniture etc.- value around £600) when he went into a care home, and also recently two pedigree puppies, but the costs of producing/caring for two puppies far outweighs any profits.

Do I have to fill this in or should I contact them asking why this has been sent to me?

olivetti

I would not read into the letter what you have. It sounds to me like they either have a gap in your records or they have conflicting information (more than one record etc.) and want to find out what the real situation is. Have you changed jobs in the last 6 years?

Unless you are trading on ebay (buying goods specifically to sell on) what you describe is disposing of chattels which do not attract CG or income tax.

The breeding of dogs does sound like a business but if it is a one off and something that you do not do regularly. I would not worry about it especially if the costs are greater than the sale price, as an aside did you keep accounts/records for doing this?

I would just fill it in as requested and send it back, you never know you may have overpaid tax!

greenflamingo_2

Thanks Olivetti
No I havent changed jobs - been at my present one for the past 21 years.
I didnt keep accounts for the pups as it is my hobby and only done once a year at most.
So I guess casual earnings\disposal of assets section doesnt need filling in?

fengirl_2

It looks as if HMRC may have picked up on the Ebay selling. You have not disposed of any assets, so you dont complete this.
As olivetti says, your Ebay selling is not taxable and the puppy selling was casual. If challenged, you can support this.

greenflamingo_2

Thanks Fengirl
When you say "dont complete this" - do you mean the "Other Assets Section" or should I just ignore the whole form? I read so many media reports of various government agencies losing information/personal data or making mistakes I am reluctant to fill in anything from the government unless I have to.

silvercar

Don't complete the assets section, but you do need to complete the form.

Paparika

greenflamingo wrote: »

Could someone please help me on this one? This morning I received a letter from "Local Compliance, HM Revenue and Customs". It is a questionnaire asking for all my details over the past 6 years (this bit being altered by them in pen); it seems to be worded as though they are trying to find out whether I am running a business. I cannot understand why I received this as I am salaried employee and not a company director etc.

There is a section asking for details of "other income" i.e. "renting a house/land, untaxed interest, disposal of assets, commission, casual earnings or on a self employed basis".

I am not sure what "disposal of assets" means; what is an asset?
or "casual earnings"?

In fact I am not sure why they are asking me for details of any of this at all. I have sold a few things on Ebay on behalf of my father in law (such as stairlift, furniture etc.- value around £600) when he went into a care home, and also recently two pedigree puppies, but the costs of producing/caring for two puppies far outweighs any profits.

Do I have to fill this in or should I contact them asking why this has been sent to me?

I've worked for Compliance in HM Customs, looks like if you are telling the truth that they may have you mixed up with someone else,

I'd contact them and suggest you think they have the wrong person.

But ( sorry i don't know you from Adam) knowing what they are like and what they can do, if they think you are up to no good, they have warrants to raid your house without your permission and take you stuff (paperwork, pc) to review back at their office.

But bearing in mind compliance usually only deal with the rich/ and or famous who think they are beyond paying taxes.

I've more of mind that they might have you mixed up with someone else

Mikeyorks

Paparika wrote: »

But bearing in mind compliance usually only deal with the rich/ and or famous who think they are beyond paying taxes.

That's both incorrect and misleading to the OP. HMRC have specialist teams dealing with 'the rich and famous' and 'High Net Worth Individuals'. This is from 'local compliance' as both in the original post and the heading.

So it's likely been picked from Ebay or - more likely - local advertising or a 'tip off'. Whichever - it needs completing. Working on the assumption it's for someone else or - worse still - contacting them and suggesting that, is only going to deepen any existing suspicion.

mtem74

Given the number of years you suggest the tax are looking into I'd guess it's your dog breeding business that they may be looking at.
Whilst you say it was a hobby, you still did it commercially and were paid for goods (the dogs).
As others have said I would contact the tax officer in question to clarify what kind of information they are requesting. It may help you in the long run

greenflamingo_2

Thanks everyone for your responses. I can only think it is either ebay or my hobby.
I dont even know how much money I have received for puppies over a 6 year period as it certainly wasnt every year and I dont keep records and I certainly havent got any receipts of expenditure as it isnt a commercial thing. How would HM Customs and Excise put a value on this - would they know how if I dont know myself?

greenflamingo_2

Another quickkie comment - if you have "more than two breeding !!!!!es" or "produce 5 or more litters a year" then you need a Commercial Dog Breeding Licence. Obviously this isnt applicable to me so I am wondering why, if it is the puppies, any revenue is taxable?