HMRC investigations

Re: HMRC investigations

Hannah Wynne Richards — Fri, 27 Nov 2009 09:20:29 GMT

Jonathan I'll bake you a fruit cake with a file in it !!!!!!!!!!!!!!!!!!!!!!!!

Wynne

Re: HMRC investigations

J G Wray — Fri, 27 Nov 2009 07:08:00 GMT

Dear Mr Mostyn,

Good advice, but we have already checked and here's the rub - the providers of the cover are "considering" whether this type of investigation falls within the terms of the insurance.

We will of course take this up with insurers and brokers if it doesn't, concerned as we would be about being "mis-sold" something....

We'll let everyone know how it pans out.

Regs

JGW

Re: HMRC investigations

Ian Mostyn — Fri, 27 Nov 2009 00:04:26 GMT

Check your standard surgery insurance. I have had at least 2 quotes ofr my standard surgery contents, building, liability insurance and both include full AND aspect tax investigation insurance.

Ian

Re: HMRC investigations

Niall Taylor — Sun, 15 Nov 2009 17:05:33 GMT

[quote user="Evelyn Barbour-Hill"]The tax people are allowed to do this to you. Get that insurance.[/quote]

K, I'm convinced, sounds horrendous! I'll ring them in the morning, although knowing my luck we'll have a notification of inspection on the doormat before I get a chance.

Cheers,

Niall

Re: HMRC investigations

Evelyn Barbour-Hill — Sun, 15 Nov 2009 16:35:17 GMT

Cripes, you really ought to have that insurance.

I had one of these "investigations" a while ago. Having the insurance meant I did not need to worry about the cost of having my accountant on the case and constantly arguing my side. It was stressful enough anyway, with the tax man demanding ever more esoteric bits of paper - I spent many hours rooting through dusty boxes in the loft - and asking questions clearly intended to catch me out, and prying into my private life. He did his own peculiar "analysis" which any competent statistician could tear to shreds, apparently to show I was working some sort of fiddle over "work in progress". This sort of thing just takes over your life, with worry, stress and loft-searching. It dragged on over 18 months until my accountant (a good one) put in a formal complaint and demanded that the matter either go to the tax commissioners or be dropped. The next thing to arrive was a letter from the tax man thanking me for my co-operation (!) and stating that there was NO extra tax to pay.

It is clear that they hope you will give up and "settle out of court" as it were. Don't.

I've had no trouble with VAT, but I did have a little argy-bargy over PAYE/NIC many years ago. I stuck to my guns and eventually they grudgingly admitted I was right.

The tax people are allowed to do this to you. Get that insurance.

Re: HMRC investigations

PATRICK MARSHALL — Sat, 14 Nov 2009 11:50:10 GMT

Having had and "aspect" inquiry from the Inland Revenue about 11 years ago I can assure you that you need someone with a bit more clout than a financially savvy practice manager on your side to present your case adequately. It's a minefield and getting it wrong WILL BE VERY EXPENSIVE.

You have to balance the cost of having correct and specific professional advice (which is certainly NOT cheap) against the downside of having a very large and retrospective (up to 7 years) tax demand if you are unable to defend yourself against the IR claim.

This is not an area for enthusiastic amateurs.

Paddy Marshall

Re: HMRC investigations

Niall Taylor — Sat, 14 Nov 2009 07:38:00 GMT

[quote user="Patrick Marshall"]This is probably shutting the stable door after...... but our accountants recommend that we take out insurance for this eventuality. I certainly do and it costs about £175 a year.[/quote]

Hmm, we've always declined such insurance but, given the tone of the OP, maybe we should have a re-think. Sounds pretty draconian, I'm amazed that they can insist you have your accountants present. We've got an extremely financially qualified practice manager, would they accept someone like that instead I wonder?

Cheers ,

Niall

Re: HMRC investigations

PATRICK MARSHALL — Sat, 14 Nov 2009 00:04:36 GMT

This is probably shutting the stable door after...... but our accountants recommend that we take out insurance for this eventuality. I certainly do and it costs about £175 a year.

There is a certain inevitability that VAT and tax inspections will occur a some stage if you run a business for long enough. They are likley to beome more frequent as the Governement tries to shore up its dwindling revenues and its expenditure continuesto exceed its income.

The insurance does not cover any monies that may be found to be owing but it does cover the fees of those who are acting for you on either an "aspect" or general inquiry which helps to soften the blow as well as giving you the opportunity to mount a robust defence against claims of underpayment etc.

You can get more information from Hazlewoods LLP, Cheltenham

Paddy Marshall