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ALL
ABOUT TAX INVESTIGATIONS
THE BENEFITS OF LIMITED COMPANIES FOR
SMALL BUSINESS
TAX INVESTIGATION INSURANCE
FINDING A GOOD ACCOUNTANT
IS A WEBSITE WORTH IT FOR MY SMALL
BUSINESS ?
DO I NEED A BUSINESS BANK ACCOUNT ?
ALL ABOUT TAX INVESTIGATIONS
Article written by
Antony J. Holdsworth & Co,
IR35 Accountants
and small business
Accountants in Essex.
The
start of tax investigations :
The Inspector will notify you by letter if there is to be
an enquiry into your tax return. This letter will usually
be accompanied by a copy of the HMRC "Code of Practice"
booklet. The notification will also include a request for
you to submit certain business records.
Consult
a professional advisor before submitting any records to
the Inspector during tax investigations.
Meeting
the Inspector :
The Inspector will review thoroughly any records you send,
looking for inconsistencies and discrepancies. During the course of tax investigations you will
probably be requested to attend a meeting with the Inspector when you
will be asked questions about your business affairs, personal
life, and lifestyle. Using the records you sent earlier, the
Inspector will make thorough preparations for this meeting.
There will be questions about any discrepancies the Inspector
believes have been found in your records.
The opening meeting will be pivotal to the tax enquiry / tax investigation. The Inspector
will prepare detailed minutes of it. Later in the tax enquiry,
the Inspector may use as evidence any answers you give in
the meeting. You must be well informed and well prepared before
attending the opening meeting. Make sure you take advice from
a professional advisor before attending a meeting with the
Inspector.
Take
a professional advisor with you to any meetings with the
Inspector. Using a professional advisor will greatly increase
your chances of achieving a favourable settlement in tax
investigations.
Requests
for further information :
After the meeting, the Inspector may make requests for further
information. Such information may include details and statements
of personal bank accounts or those of a spouse or relative,
a statement of your assets and liabilities, or even a means
test. Always consult your professional advisor before responding
to such requests.
A professional
advisor will tell you what information you are obligated
to provide during the course of tax investigations. He/She
can help you produce any numerical schedules that may be
required.
Negotiating
a settlement in tax investigations :
It is essential you utilise the services of a good professional
advisor when the tax enquiry reaches the negotiation stage.
The Inspector will have been trained meticulously by the
HMRC and will work almost exclusively on tax investigations
or tax enquiries. Traders without professional advice often
suffer larger assessments during tax investigations as they will be unaware of the
negotiating procedures used by the Inspector.
Always employ the services of a professional advisor
to handle negotiations with the Inspector on your behalf.
Without one you may find it difficult to negotiate a favorable
settlement in tax investigations.
Appealing
against assessments in tax investigations :
You may feel the assessment calculated by the Inspector is
unfair. A professional advisor will be able to advise you
if he believes this to be the case. He will also be able to
advise you of the courses of action available to you for appeal.
You may be able to appeal against the assessment itself or
even against the conduct of the enquiry by the Inspector.
Speak to a professional advisor to find out what your options
are. |