self assessment nightmare

hariboh

Thanks to everyone for their input.

I was saying the exact same to my husband about half an hour ago sunshine..... luckilly he only really worked like this for a few years when the work dried up in our local area.

He would prefer to stay at home with his family but same old story.... no work and bills to pay... i have no doubt that the way to go is with professional help but at least i have a better idea of what we are up against with all your helpful comments.

hariboh

Well, husband went to the account yesterday with all the documents the tax inspector had wanted to see and he said it seems to be quite common just now with them trying to claw money back....he says these were legitimate costs to my husbands business and he will fight them on our behalf.

I just thought i would update you all incase anyone else has received the same letter/demand

chrismac1

They are trying on lots of things right now. As an example, for one client of mine they deleted 2 submitted tax returns. Bad enough, but both were submitted on time and now they've fined him £200 for late submissions. The good news here is that both were submitted online, so I have HMRC official date and time stamps for both of them. Trust nothing HMRC says or does and you'll not be disappointed!

Pennywise

The inspector in your case clearly doesn't have a clue. He can't allow the travel but then disallow the accommodation when one leads to the other and they're both incurred for the same "job". It's all or nothing. All I can imagine is that he's trying to "bounce" you into accepting the accommodation to be disallowed in the hope that you merely accept it and don't take professional advice - i.e. hoping you'll be grateful he's still allowing the travel. If you have it in writing from him that he's allowing the travel, then it's pretty much an open and shut case and you should end up with the accommodation allowed as well, although if the inspector doesn't back down, you'll have to see it through to a formal review and/or appeal to the first tier tribunal.

chrismac1

I agree with Pennywise and think this shows the Inspector realises HMRC have a weak position. Probably one well-written letter from a local accountant (so he or she knows this one will last all 12 rounds) and they'll just cave in and accept their bluff has been called. If one aspect of the cost here is business then so is all of it. In my view this is just part of a wider picture to screw the hell out of legitimate small businesses whilst letting the fraudlent ones, the ones who don't ever file anything, and the big guys like Vodafone go Scot Free. Like the cameras which dish out 3 points for doing 34 in a 30 zone, it's go after the easy hits and let the tough nuts build up in the "too difficult" pile.

hariboh

Hi All

This was the letter we received today....

Dear Sir/Madam

Thank you for your letter dated 21st of March 2011.

Firstly, my sincere apologies to both you and your client. My brain had certainly switched off and my wires had also become quite crossed - sorry.

You are correct in your analysis of my comments and i agree that the figures for accomodation and subsistence should stand as originally claimed in the 2009 Tax Return.

I will arrange for an enquiry closure letter to be issued shortly.

Yours faithfully

Compliance Officer


......so fingers crossed we receive the closure letter shortly.

Thanks again for all your knowledgable input..without you all i would certainly be pulling my hair out xx

taxsaver

I'm pleased for you that you have this result and the weight lifted from your shoulders.

Nevertheless I'm still extremely annoyed that Revenue staff try it on like this or 'make innocent errors' and get away with it. Due to him you have not only endured needless worry but have also incurred fees in order to have an accountant fight this for you.

As an accountant this is of course great for my business, but I still frequently find myself morally outraged at the injustice of it. If you make an innocent error or are even a day late submitting something you will be fined at least £100! :mad:

Sorry... rant over.

System

hariboh wrote: »

Hi All

This was the letter we received today....

Dear Sir/Madam

Thank you for your letter dated 21st of March 2011.

Firstly, my sincere apologies to both you and your client. My brain had certainly switched off and my wires had also become quite crossed - sorry.

You are correct in your analysis of my comments and i agree that the figures for accomodation and subsistence should stand as originally claimed in the 2009 Tax Return.

I will arrange for an enquiry closure letter to be issued shortly.

Yours faithfully

Compliance Officer


......so fingers crossed we receive the closure letter shortly.

Thanks again for all your knowledgable input..without you all i would certainly be pulling my hair out xx

An excellent result :T and hopefully your accountant will have asked for compensation for you for the extra expense you have been put to in having to retain an accountant in the first place.

hariboh

Pam17 wrote: »

An excellent result :T and hopefully your accountant will have asked for compensation for you for the extra expense you have been put to in having to retain an accountant in the first place.

Hmm dont think he mentioned it to be honest...just sent us a copy if the letter received from the compliance officer and a bill, just glad its over lol x