Help with tax evasion investigation.

purdyoaten

Pennywise wrote: »

Is it even genuine? I've been an accountant over 30 years and never seen an initial enquiry opening letter that says the amount of undeclared income and tax. It's very strange, so strange that I don't really believe it has come from HMRC. .

Yes - I made that point earlier.

Either it is a 'scam' letter or something more serious than merely a letter e.g. calculation, P800, determination etc

zygurat789

bluelass wrote: »

im told by my friend that the letter they received from the inland revenue states they estimate from what they have been told a additional income between £35 to £45 thousand pounds would have likely to have been earned during the last 18 months.

When did the taxation authorities ever say anything like that in a letter?

It is looking more and more as if you are right.

bluelass

Some one getting creative with a printer hmmmm now you mention it. Surely the first letter would be one inviting them to a interview to determine if a offence had been committed and if so a chance to own up to save on legal costs? isn't that what happens with people suspected of benefit fraud also? im pretty sure the HMRC wouldn't just take the word of someone phoning or emailing them after all this for all they know this could be a act of spite to try and frame someone.

purdyoaten

bluelass wrote: »

im pretty sure the HMRC wouldn't just take the word of someone phoning or emailing them after all this for all they know this could be a act of spite to try and frame someone.

Let me put it like this - if only HMRC acted with the same urgency in bringing honest taxpayers affairs up to date as THEY DO when they receive an anonymous tip-off. In my distant existence as a member of that organisation, there was nothing given more priority!

If HMRC receive an anonymous note it goes straight to the inspector (or whatever thay are called now). If they receive a query regarding your PAYE code number ? A different proposition.

purdyoaten

bluelass wrote: »

Surely the first letter would be one inviting them to a interview to determine if a offence had been committed and if so a chance to own up to save on legal costs? .

Good God - no! The first thing that usually happens is that self Assessment return(s) are issued to give the taxpayer an opportunity to declare all of his/her income. Unfortunately it also gives them the opportunity not to declare all of his/her income and we have exacerbated the problem with an incorrect return - reduction in penalties for full disclosure become less likely etc etc.

HMRC do give one the opportunity to come clean but they take a dim view if you don't.

keaton

I might be wrong, but I'm sure I read a hmrc determination can only go back 3 or 4 years, so dies it not depend on when this man did his moonlighting?

purdyoaten

keaton wrote: »

I might be wrong, but I'm sure I read a hmrc determination can only go back 3 or 4 years, so dies it not depend on when this man did his moonlighting?

Previous posts indicate 'over the last 18 months'

keaton

purdyoaten wrote: »

Previous posts indicate 'over the last 18 months'

So what do they do if he was doing this for 5 years, what about the years outside the time limit?

zygurat789

purdyoaten wrote: »

Previous posts indicate 'over the last 18 months'

So this self employment started May 2013, in 2013/14 tax year, tax return due to be submitted by 31 January 2015.

More and more like a private frightener.

purdyoaten

keaton wrote: »

So what do they do if he was doing this for 5 years, what about the years outside the time limit?

Once HMRC have established good reason for an investigation, e.g. negligence of taxpayer, the time limits don't really exist. Twenty years was my record for a client - failure to declare an offshore bank account - I believe that this is regarded as a general maximum.