HMRC inspection and growing anxiety issue

kimshaven

Hello

My small business is under HMRC inspection. The letter was received in Dec for Sep VAT reclaim. The inspector requested a number of invoices in Jan so I sent them back right away but there was no response for months. I and accountant kept chasing by emails and calls but no update was made by HMRC. 

Due to the lack of cash flow and uncertainty I had to stop trading and creditors started chasing me and my business. And I started hearing some news that other businesses in the same exporting sector have been receiving harsh inspection results as their claims have been rejected and requested for penalties instead for many various reasons though they were previously approved by HMRC. It is mainly because UK abolished travellers VAT refund yet the business runs similar way claiming huge amount, though my business is far smaller than any other. 


 I had to make a formal complaint after finding out that inspector did not update 64 form (agent) that was sent in Feb and other HMRC advisors on the phone said the inspector has moved onto other case, so there was no one taking my case. Then I recently received an email with a request for an extensive data of details with export, invoices etc.

I am pregnant with my second baby and I have been under pressure all throughout. My husband is in the army and has been away for his operation for months so I have been the only person to look after my first child and myself. 

My due date is June, and all of sudden I started getting anxiety attacks with more worries about what decision HMRC would make /fiancial issue and not being able to work properly myself due to my personal circumstances. I feel that I cannot cope with anything at the moment so I keep breaking down and had to call 111 and midwife. 

To be honest as a foreigner, I do not know if there is any way out or place to get advices/help. I have been calling everywhere but they do require huge amount of money and always unclear about how they would deal with the case. If HMRC inspection does not go well I do not know what to do with two young children not being able to make money actively, and if my company can be closed down, and if I would be able to respond to HMRC queries when I am babysitting the newborn etc. 

Any advice would be helpful. Thank you. 

uknick

Have you tried your local Citizens Advice Bureau?  Whilst they won't be experts on VAT, they may be able to point you to someone in your area who can give you some free advice. 

kimshaven

I haven't. I called a few places and they were not taking as its business related. I will try. Thank you. 

Savvy_Sue

Are you a limited company? Or a sole trader? It may make a difference to the answers people give. 

Do you have any insurance in place for the business? It's worth checking whether there's any cover in there for HMRC inspection of your accounts, and / or whether it's covered by the agreement you have with your accountant (or was the change of agent form telling HMRC to come direct to you?)

kimshaven

Savvy_Sue said:

Are you a limited company? Or a sole trader? It may make a difference to the answers people give. 

Do you have any insurance in place for the business? It's worth checking whether there's any cover in there for HMRC inspection of your accounts, and / or whether it's covered by the agreement you have with your accountant (or was the change of agent form telling HMRC to come direct to you?)

It is a LTD company. I have an insurance but the insurance company hasn't made a decision yet if they would cover as HMRC sent a letter before insurance start date, but HMRC sent to a wrong address so no one was aware. 

KURTIS

If you haven't done anything wrong then nothing to worry about. You could try https://www.businessdebtline.org/

sheramber

What advice has your accountant given you?