HMRC Requests for Documents

[billypeel]

I work on ships and am undergoing a "check" at the moment.
HMRC have asked for 2 specific sets of documents to be provided (by the shipping company).
One is all the ship's logs for the period (72 pages of A3). I think this is so they can check when the ship was in UK waters.
The other is all the daily reports sent from the ship back to head office for the entire tax year (between 4000 and 6000 pages of A4). They want to "determine the nature of work it was involved in". I presume this is so they can decide whether to classify the vessel as a ship or as a fixed installation, and thereby determine whether I am eligible for the Seaman's Earnings Deduction.
Since most of the information in these logs and reports will be confidential, is a shipping company obliged to release them to me?
Also, given the quantities of material involved, could the company just ignore such a request or say it is impossible to process?
Would HMRC then say, "well you haven't complied so we will assume you are not cooperating and penalise you accordingly"?
Any advice on how to deal with HMRC on this?
Thanks in advance.

[pawncob]

These are not documents within your control, so HMRC can't insist that you provide them. If the Inspector wants them, he will have to ask the ship owners. You could ask the company for a summary of your journeys which HMRC will accept as evidence, and description of your duties.

[mullet]

Sometimes the HMRC person requesting the information may not understand the nature and/or extent of the documents concerned. In strictness they should focus only on their perceived risks, and take account of how you operate and what records you are likely to have. They can only ask for items in your power or possession, and then only items reasonably required for the purpose of establishing whether your return is correct.

I see that they have immediately requested "third party" information through you. The shipping company would probably only release information which directly relates to you, but I don't think that it is obliged to do so. If it refuses, then that information is not within your "power". HMRC could make a direct request to the co though.

I suggest that you find out what the co will let you have, and then contact HMRC to seek clarification and suggest that providing up to 6,000 sheets of A4 is unreasonable.

[billypeel]

Many thanks to pawncob and msp.
I thought the request seemed unreasonable!
I think I will do as you advise and ask the company (if I can find an address for them!) for a one page summary of the work they did in the tax year and take it from there.
Thanks again.

[wamstax]

I think that you might be misinterpreting their request in that it is only the ships log for the vessel or vessels that you performed duties on that they are after and from my experience you would normally get a copy of that from the ships captain each year to assist you with your tax return? Otherwise how did you compile your days on board and at sea etc. You will also have your record of sea service book that will show the date of joining and leaving the ship.

I would respond by saying that the above is all the documents you have under your control and you are enclosing copies - (do not send the originals in case they lose them)to satisfy their request. Of course if you want to be pedantic you can always say that their request is unreasonable as it refers to documents that are not in your power or possession and therefore you are unable to comply. However giving them copies of your own documents will at least show that you are trying to be reasonable.

As far as their request for information to enable them to determine if the vessel was a ship or fixed installation I would ask them for the reasons that they have to doubt that your claim was not validly made and whether this request has been made for each member of the vessels crew.

[billypeel]

Hi wamstax,
They already have copies of my sea service book and, in some cases, extracts from the ship's log. Extracts, not the entire log, are usually all that is needed, though I was once asked to provide the Draught of Water and Freeboard Log - only one page fortunately.
I have the impression that the request for evidence of the nature of the work carried out is connected to an earlier attempt to reclassify vessels that worked anywhere in proximity to an oilwell as fixed installations. My understanding is that HMRC changed its guidance in 2009 (EIM33105) to the effect that this ruling only applied to vessels that actually do things to oilwells - like the ones trying to fix the leak in the Gulf of Mexico. My guess is that they want confirmation that my vessel did not do this. But it's only a guess so perhaps I should ask for their reasons for the request and maybe ask if a summary would do just as well.

[wamstax]

Yes I would recommend that you submit (or say that you have submitted) all the personal records that you have regarding the ships log etc and say that unless they can show you otherwise you do not consider it reasonable for them to be asking you for information that is clearly not in your control but belongs to a third party namely the ship owners.

You might suggest that they contact the shipowners direct for any information that you have not obtained or for which you do not have copies of documents (as clearly you would want any attack on a particular ship to be monitored by your employer as clearly it would affect all employees). You might also wish to consider consulting your union in case they can assist.

regards and hope that this helps
bill@wamstaxltd.com
http://www.wamstaxltd.com