Tax investigation, have you had one ? any tips
Discussion
I been "chosen" for one, have nothing to hide but I believe they try to intimidate, one of the tips I been told is they like the overhalf to attend so that she can nag you in to admitting anything whist they wait three months before replying to your correspondance and then inviting you in for another meeting. So it was suggested the wife is looking after the sick mother in law, any one else been through this.
They will only want the other half there if its regarding joint assets etc.
If she has nothing to do with your affairs she doesn't need to be there, no need to make up excuses just say she cant make it but you will be able to help them fully.
They will look into any and all property purchases and sales you have made in the last few years rent anything like that, looking for things you have not declared.
If you have nothing to hide you have nothing to worry about, if you have been a naughty boy and not declared the rent on your buy to let place you should knock out a Profit & Loss sheet including the mortgage interest to show you never made a profit on it, if you have been daft enough to bank a load of cash you have not put through your business then your probably going to get it.
Oh I have never had one but I am an accountant so I know how this all works, you should be fine unless you have been a naughty boy.
If she has nothing to do with your affairs she doesn't need to be there, no need to make up excuses just say she cant make it but you will be able to help them fully.
They will look into any and all property purchases and sales you have made in the last few years rent anything like that, looking for things you have not declared.
If you have nothing to hide you have nothing to worry about, if you have been a naughty boy and not declared the rent on your buy to let place you should knock out a Profit & Loss sheet including the mortgage interest to show you never made a profit on it, if you have been daft enough to bank a load of cash you have not put through your business then your probably going to get it.
Oh I have never had one but I am an accountant so I know how this all works, you should be fine unless you have been a naughty boy.
Edited by Jgtv on Monday 29th June 14:19
Are you self-employed?
Do you complete self-asssessment tax returns?
Do you know why you have been selected?
Do you have an accountant who would be able to represent you at any meetings with the Revenue?
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence.
I have been involved in numerous tax investigations over the years and you have to tread very carefully when dealing with HMRC.
Do you complete self-asssessment tax returns?
Do you know why you have been selected?
Do you have an accountant who would be able to represent you at any meetings with the Revenue?
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence.
I have been involved in numerous tax investigations over the years and you have to tread very carefully when dealing with HMRC.
say very very little- do NOT ramble under any circumstances. do NOT be chummy. write EVERYTHING down, including what they say. Take a tape recorder. Record the conversaion and tell them you are doing so.
Do not be cowed, if you have done something wrong, they will tell you. Get advice if it is for a lot of money. If it is minor then pay the bill and take it on the chin.
You are NOT under arrest and can have whoever you want with you.
Do not be cowed, if you have done something wrong, they will tell you. Get advice if it is for a lot of money. If it is minor then pay the bill and take it on the chin.
You are NOT under arrest and can have whoever you want with you.
Eric Mc said:
Are you self-employed?
Do you complete self-assessment tax returns?
Do you know why you have been selected?
Do you have an accountant who would be able to represent you at any meetings with the Revenue?
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence.
I have been involved in numerous tax investigations over the years and you have to tread very carefully when dealing with HMRC.
A little bit of wee just came out.Do you complete self-assessment tax returns?
Do you know why you have been selected?
Do you have an accountant who would be able to represent you at any meetings with the Revenue?
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence.
I have been involved in numerous tax investigations over the years and you have to tread very carefully when dealing with HMRC.
I hope I'm never probed.
On another note don't accept that what there saying is correct, or accept there first numbers if your have been caught out, everything is open to an appeal to at the end of the day.
If you have an accountant get them to sort all this for you, if you do it all yourself fish out all the invoices you had to submit your return and be prepared to show them.
If you have an accountant get them to sort all this for you, if you do it all yourself fish out all the invoices you had to submit your return and be prepared to show them.
NDA said:
Eric Mc said:
Are you self-employed?
Do you complete self-assessment tax returns?
Do you know why you have been selected?
Do you have an accountant who would be able to represent you at any meetings with the Revenue?
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence.
I have been involved in numerous tax investigations over the years and you have to tread very carefully when dealing with HMRC.
A little bit of wee just came out.Do you complete self-assessment tax returns?
Do you know why you have been selected?
Do you have an accountant who would be able to represent you at any meetings with the Revenue?
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence.
I have been involved in numerous tax investigations over the years and you have to tread very carefully when dealing with HMRC.
I hope I'm never probed.
Should cover you.
At the end of the day, they will find something, just to justify their visit to their superiors.
dirty boy said:
Hide all your antiques, never let them see you with any jewelry on, hire a Mk3 Cortina to turn up to meetings in, spread horse manure all over the front lawn if you have a big house.
Should cover you.
At the end of the day, they will find something, just to justify their visit to their superiors.
There not that bad any more, in fact if I am honest there more incompetent now than ever.Should cover you.
At the end of the day, they will find something, just to justify their visit to their superiors.
If you turn up looking like you have made the effort to look bad there probably going to twig something is up but saying that if you said you have an income of 20K and you turn up in a Lambo with a 75K watch your probably f
ked.Dont have the meeting at your house, have it at your office or your accountants office.
Are you self-employed? YES
Do you complete self-asssessment tax returns? YES
Do you know why you have been selected? NO accountant says random
Do you have an accountant who would be able to represent you at any meetings with the Revenue? YES
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence. NO
Is it true the investigating officer gets a % of what they can get off you ?
Do you complete self-asssessment tax returns? YES
Do you know why you have been selected? NO accountant says random
Do you have an accountant who would be able to represent you at any meetings with the Revenue? YES
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence. NO
Is it true the investigating officer gets a % of what they can get off you ?
sussexjob said:
Are you self-employed? YES
Do you complete self-asssessment tax returns? YES
Do you know why you have been selected? NO accountant says random
Do you have an accountant who would be able to represent you at any meetings with the Revenue? YES
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence. NO
Is it true the investigating officer gets a % of what they can get off you ?
If your advisor is decent, you should be absolutely fine, they may find a few odds and sods, as, invariably, they like to have something to show for their efforts.Do you complete self-asssessment tax returns? YES
Do you know why you have been selected? NO accountant says random
Do you have an accountant who would be able to represent you at any meetings with the Revenue? YES
Do you know every nook and cranny of the UK tax system? Because, unless you do, you cannot be sure you have nothing to hide. And don't forget, ignorance is no defence. NO
Is it true the investigating officer gets a % of what they can get off you ?
Most investigations can be solved with a few pages of correspondance, if not, it can open up a full blown enquiry
Investigations aren't usually random (not in this area anyway), purely because they don't have the man power.
They tend to focus on certain sectors, possibly you deal with a lot of cash (or they expect you to) or maybe you work in an area affected by new tax laws, anything is possible, but it's likely you've been picked for a reason.
I wouldn't worry too much, listen carefully to what your advisor tells you, don't be obstructive, most are okay.
sussexjob said:
Is it true the investigating officer gets a % of what they can get off you ?
I very much doubt it, they might get a promotion out of a 'big find' ? 
Are you low hanging fruit for HMRC?
My accountant reminded me that they have targets to meet for the number of inspections they do, and that as I was a professional who was likely to be nice to them, have nice comfy offices, offer tea and biscuits and have a professional body to keep happy I was low hanging fruit, ripe for the plucking. They would get the same tick in the visits box if I was some hairy arsed scrap metal deler with a nasty dog, draughty dirty offices and a bad attitude but would have to work hard to climb for that fruit.
Make them climb that tree!
My accountant reminded me that they have targets to meet for the number of inspections they do, and that as I was a professional who was likely to be nice to them, have nice comfy offices, offer tea and biscuits and have a professional body to keep happy I was low hanging fruit, ripe for the plucking. They would get the same tick in the visits box if I was some hairy arsed scrap metal deler with a nasty dog, draughty dirty offices and a bad attitude but would have to work hard to climb for that fruit.
Make them climb that tree!
I was investigated a couple of years ago. It started over a technicality on whether the correct amount of CGT had been paid on something. My accountant dealt with everything and I didn't have to meet the Revenue at all. This cost a bit but was worth every penny, as it was hassle free (and cost a lot less than if the Revenue had made me cough up the extra tax).
My accountant is a reformed Tax Inspector, so she knows how to defeat them, mind.
My accountant is a reformed Tax Inspector, so she knows how to defeat them, mind.
I had a National Insurance check done a couple of years ago, my accountant said at the time he suspected it was the start of a IR35 investigation, he had my accounts at his office and the post NI check interview was conducted in the accountants office with him present, his advice to me was to tell the truth but be a vague as possible, give no specifics unless necessary, as supected the inspector started asking IR35 questions.
Upshot was 20months of investigation which was finally found in my favour, but of course cost me accountance y hours and time off work, fortunately I was working in Norway at the time so when the IR told me (not asked told me) to attend for further interviews my accountant replied saying I wouldn't attend and to put any further questions in writting, I would recommend doing the same whenever possible, it gives you time to give the right answer and not trip yourself up.
Good luck anyway.
Upshot was 20months of investigation which was finally found in my favour, but of course cost me accountance y hours and time off work, fortunately I was working in Norway at the time so when the IR told me (not asked told me) to attend for further interviews my accountant replied saying I wouldn't attend and to put any further questions in writting, I would recommend doing the same whenever possible, it gives you time to give the right answer and not trip yourself up.
Good luck anyway.
I had a VAT investigation a few years ago. The trigger was the fact that some residential rent was going through the business (perfectly legitimately) - no VAT on that, so the turnover:VAT ratio was out.
First question was, "Do you raise a VAT invoice for every cash transaction?" I asked if that caught a lot of people out, apparently it does
First question was, "Do you raise a VAT invoice for every cash transaction?" I asked if that caught a lot of people out, apparently it does
I was investigated a few years ago. My best friend is a CA and came with me, actually he'd done the books for the business. I was warned to keep my answers short, to the point and not to volunteer any information.
Some of the questions were quite amusing actually, "How much money is in your pocket?", which was quite funny for both of us since I hardly ever carry any cash and David had to frequently buy the round...
"Do you have a car?" I got a kick under the table for answering "Yes, thanks"
The trigger in my case was I had set up a new dental practice some 4 months previously, there had been a lot of cash spent getting it off the ground and it hadn't broken into profit by the end of the first 4 months. The Revenue refused to believe that a dental practice didn't make money so they investigated. I "won" they found nothing of any note and I got some tax money repaid from my other full time job.
Some of the questions were quite amusing actually, "How much money is in your pocket?", which was quite funny for both of us since I hardly ever carry any cash and David had to frequently buy the round...
"Do you have a car?" I got a kick under the table for answering "Yes, thanks"
The trigger in my case was I had set up a new dental practice some 4 months previously, there had been a lot of cash spent getting it off the ground and it hadn't broken into profit by the end of the first 4 months. The Revenue refused to believe that a dental practice didn't make money so they investigated. I "won" they found nothing of any note and I got some tax money repaid from my other full time job.
one tip- answer every question with a question- ie
Q- Why is you VAT return showing zer rated items
A- can you show me how you calculated that?
this gives you thinking time and pins them down and thus stops them having random fishing expeditions hoping for you to incriminate yourself- which is dead easy even when you have nothing to hide.
i suggest you always have SOMETHING to hide so they can report a "succesful investigation.
Q- Why is you VAT return showing zer rated items
A- can you show me how you calculated that?
this gives you thinking time and pins them down and thus stops them having random fishing expeditions hoping for you to incriminate yourself- which is dead easy even when you have nothing to hide.
i suggest you always have SOMETHING to hide so they can report a "succesful investigation.
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