tax investigation. advice needed.
Discussion
hi all. i'm a self employed gp and have been for the last 8 years, using the same accountants (they specialise in gp's)and was investigated last year. i turned up without my accountant thinking i had nothing to hide (i didnt) and was subsequently stung for a significant amount. seems the devil was in the detail and my definition of business mileage (as advised by said accountants)was at odds with hmrc's understanding. my accountants advice was to pay up, and they charged me for their advice...
i do understand this is a specialist field and so difficult to advise, however, would i be right in thinking that my accountant has some responsibility for events? any thoughts appreciated.
i do understand this is a specialist field and so difficult to advise, however, would i be right in thinking that my accountant has some responsibility for events? any thoughts appreciated.
Sadly, unless he gave you grossly misleading advice - and you have evidence on file that he gave you this advice - there is not much you can do.
Do you think he has given you incorrect advice?
If so, have you got evidence for this?
Is the extra tax due entirely down to a difference in the interpretation of "Business Mileage" or were there other factors?
Was the "Business Mileage" you were trying to claim inclusive of "home to work" travel?
Do you think he has given you incorrect advice?
If so, have you got evidence for this?
Is the extra tax due entirely down to a difference in the interpretation of "Business Mileage" or were there other factors?
Was the "Business Mileage" you were trying to claim inclusive of "home to work" travel?
pneumothorax said:
hi all. i'm a self employed gp and have been for the last 8 years, using the same accountants (they specialise in gp's)and was investigated last year. i turned up without my accountant thinking i had nothing to hide (i didnt) and was subsequently stung for a significant amount. seems the devil was in the detail and my definition of business mileage (as advised by said accountants)was at odds with hmrc's understanding. my accountants advice was to pay up, and they charged me for their advice...
i do understand this is a specialist field and so difficult to advise, however, would i be right in thinking that my accountant has some responsibility for events? any thoughts appreciated.
I'm more than happy to take a look too if you would like to drop me a PM? i do understand this is a specialist field and so difficult to advise, however, would i be right in thinking that my accountant has some responsibility for events? any thoughts appreciated.
We have just recruited in a manager who in her previous job headed the specialist medical accounts team at a top ten firm, so between her specialist medical accounting background and my own tax background we can no doubt help out.
when not in the regulation Audi.......
sumo69 said:
I doubt this issue is anything medically related - purely what is "allowable" mileage.
OP hasn't responded to me - have you received anything Eric or Dan?
David
Nothing as yet. OP hasn't responded to me - have you received anything Eric or Dan?
David
As to whether it is 'medically' related, GP's usually have personal expense claims that are dealt with outside of the partnership accounts, including certain professional subscriptions, medical equipment, use of home as well as more conventional claims such as business mileage (but even this has some ground rules as to what is accepted by HMRC as 'wholly, exclusively and necessarily' incurred). It's not rocket science but equally there are some peculiarities and accepted practices to be aware of.
thanks guys. i am a locum and always have been. i work for various practices and at different hospitals and have never had a set place of employment. it would seem (and this is the advice i was given) that since i had no fixed place that was realistically defined as my place of work, then my home became my business address and so travel to my various sites (there are approx 30 locations)where assumed to be claimable journey's. hmrc have refused this and now none of my mileage is considered business related.
so got stung for £30k.
at no point did my accountant advise in any way about this. in fact, when i called them after my meeting with the inspector, they where adamant that his assessment was incorrect.
fwiw i think it's something i'll need to chalk up as an experience and will need to practice in more tax efficient patterns in the future.
just be good to know and intersting to hear the collective's thoughts
thanks
john
so got stung for £30k.
at no point did my accountant advise in any way about this. in fact, when i called them after my meeting with the inspector, they where adamant that his assessment was incorrect.
fwiw i think it's something i'll need to chalk up as an experience and will need to practice in more tax efficient patterns in the future.
just be good to know and intersting to hear the collective's thoughts
thanks
john
pneumothorax said:
thanks guys. i am a locum and always have been. i work for various practices and at different hospitals and have never had a set place of employment. it would seem (and this is the advice i was given) that since i had no fixed place that was realistically defined as my place of work, then my home became my business address and so travel to my various sites (there are approx 30 locations)where assumed to be claimable journey's. hmrc have refused this and now none of my mileage is considered business related.
so got stung for £30k.
at no point did my accountant advise in any way about this. in fact, when i called them after my meeting with the inspector, they where adamant that his assessment was incorrect.
fwiw i think it's something i'll need to chalk up as an experience and will need to practice in more tax efficient patterns in the future.
just be good to know and intersting to hear the collective's thoughts
thanks
john
Another issue is status. Are you employed or self employed? You have to turn up when required by them, use their facilities and premises, equipment and staff, cannot send a substitute, etc, which all imply employment. On the other hand, you ave no right to turn up and expect work, no right to pad holidays or sick pay, which imply self-employed. HMRC have treated you as if you are employed. I think you should appeal their decision. I think you are self-employed. Do you have a contract for the work? Is it a contract of service, or a contract for services? If you are self employed your mileage should IMHO be allowableso got stung for £30k.
at no point did my accountant advise in any way about this. in fact, when i called them after my meeting with the inspector, they where adamant that his assessment was incorrect.
fwiw i think it's something i'll need to chalk up as an experience and will need to practice in more tax efficient patterns in the future.
just be good to know and intersting to hear the collective's thoughts
thanks
john
i'm self employed. 100%. i invoice practices each month. i bring my own equipment (it isnt much)and simply consult with patients in whichever premises i'm working from. hmrc presented it all as a fait accompli and the accountant simply advised "pay them". which i did. had to sell my F355 so i'm not happy!
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