Compliance check of CT, VAT and PAYE

[Adviceneeded]

We received a letter stating that hmrc want to come and do a check of CT, VAT and paye. This just looks like a cover for a tax investigation.
Hmrc are asking for everthing under the sun. Can anyone please explain what is meant by a 'full analysis of sales', a 'full analysis of costs' etc.
They are coming to review the records anyway yet they want full analysis of these before they visit.

It just looks like a complete snoop into everything.

Thanks.

[Generix]

In terms of VAT a full analysis would include a listing for a particular period of all sales with the VAT treatment applied to each and the same for purchases.

This should be a record ordinarily held and checked on a quarterly basis anyway.

[wamstax]

This is a typical start to a FULL Investigation and it is typical of HMRC officers to assume that you understand their jargon and a re able to completely understand that a full analysis means a listing of all sales (to include date of sale, customer (name and address) amount of sale (gross and net before VAT) and nature of the item or service sold, and how and when paid). OK I have gone a bit overboard but this is the situation that arises when the officer is careless or lazy and does not define what they want to appear in the analysis/listing. Again the full analysis of costs - unless they have defined exactly what costs they want listed - could require you to completely list and itemise each and every single cost that the company incurred during the accounting period.

Invariably they will also have asked for any computer data maintained during the year by the company and if so it is likely that each and every sale and/or purchase will have been listed there. So why should you have to go to the trouble of duplicating information and pandering to their every whim and laziness. If as is possible their request is so vague as to be meaningless I would always write back and ask them to be specific and explain exactly what they want in their "listing".

You only need to respond to requests that are reasonable