hmrc tax enquiry

churchill23

some enquires are for part or whole(full) ,by this it could mean something just dosn`t add up as was in my case(mileage verses fuel cost)but proved a landrover will not do 35 mpg(book says it will) around city city centre,top gear did a test on a range rover and got 8mpg but the book said it will do 22mpg plus.they are not dummies though and can tell if yours filling up the families cars with fuel and not just your own ,in there eyes you must prove it not them!!!
mine went on for just over a year and was passed all around the office i think !! as i would get letters saying someone new had taken over the case,in the end no extra tax to pay so happy result although i had to pay accountants for dealing with them,

good luck just be honest as thats all you can do

churchill

chappers

Churchill23 thats what really !!!!es me off about our tax system, the need to disprove HMRCs claims.
We have all probaly bent the tax rules in the past, but it really pi55es me off when they come at you with some spurious allegation, when you are trying to run your business in an honest and fair way, whilst big business and industry can get away with paying virtually no tax whatsoever.

fengirl_2

HMRC had until 31/1/08 to enquire into your return for the year ended 5 April 06 and as they issued the enquiry notice in July 07, the enquiry is within time. Your accounts for the year ended 31/8/05 fall into the tax year ended 5 April 2006, so the records requested are correct. If the enquiry was opened in July 07, you have been given a lot of leeway if you have only submitted your records in Jan 08 - 5-6 mths later!
The Inspector will be examining your records and will probably want to meet you and ask some questions about the business in order to decide whether or not your records reflect the transactions of the business. If any errors are found, HMRC will want to negotiate a settlement with you, using your accountant as an intermediary.

Nomad25

Hi Jonone - I've been looking to see if you made it to the right board and got some answers .... it looks like my faith in fellow MSE'rs was as ever well founded. Don't forget the other boards [e.g. Debt Free Wanabee] that may help you with other issues, the forum is a goldmine of advice, help and support. Good luck mate.

tyllwyd

Just out of interest, is there a minimum/maximum period that the HMRC will usually let you trade without an enquiry? I've never heard from them, but I've been self-employed for about seven years, and I had it in my mind that since they can only go back about seven years, maybe they would schedule me for an enquiry just because I'd been trading for that long. (I'm only part-time, so relatively speaking my profits and expenses are tiny, and I only work for medium sized companies so I never receive cash, so I guess those factors wouldn't flag up for me).