INvestigated by Inland Revenue and ooops...

heleen

Hi there

I got a letter saying they wanted to investigate my tax return to April 2003. It is a routine inspection and looks and business expenses and charitable deductions.

I spoke to the investigator and it turns out that charitable deductions are only allowed for UK based charities. This is what I thought but I'd sent my tax return to be filled in by an accountatn and he just put the lot on (even though my list to him showed which ones were US based etc).

So now I know there is a boo-boo on the return and I'll own up to it straight away. What is the worst that could happen? Of course I'm happy to pay the tax I owe but will I get fined or anything? Do I have to pay interest?

Thanks for any reassurance.

Unbelievable_2

You'll have to pay the tax plus a bit of interest (Inland Revenue interest rates are a real liberty IMO) - and maybe you should shout at your accountant for an hour and charge him for it! Lots of luck!

Robert_Sterling_3

You do not pay your account to get your tax wrong do you?

heleen

There's a reason he's no longer my accountant ;D

He did offer to pay the interest though.

Still, it's embarassing and I hope won't mark me as a fraudster with the Inland revenue!

Robert_Sterling_3

There's a reason he's no longer my accountant  ;D
He did offer to pay the interest though.

As a matter of great interest did you offer to go dutch on the payment of the interest?

heleen

LOL! ;D

Heck no! The Dutch are known to be stingy.... PLUS I live in Scotland!

vansboy

Is it an ENQUIREY or an INVESTIGATION????

'Cos if it's investigation, you can be certain, even if you've NOTHING to hide, they'll look!!

Best is to get a meet set up with the tax officer assigned to your case & give them all the help you can, from the start.

Penalties will be applied on a number of points, including how helpfull you are, in the proceedings.

You'll want this over & done with ASAP, BELIEVE ME!!!!!!!!!!!!!!

VB

heleen

Thanks for the tip. It's an ENQUIRY. Thank goodness.
I have called the guy and sucked up to him already ... ;D

vansboy

GOOD!!

Lets hope you can answer the Q's easily - & settle without it getting deeper!!

VB