self employed sole trader check

[tomwhite_]

hi,
I am in the process of a tax enquiry from hmrc.

I have been asked to fill out and sign a statement of personal assetts, liabilities and business interests form.

do i need to put all my bank accounts which belong to me on the form? (even if i havent used them and the balances on them are £0?)

[LozaACCS]

This seems more than a section 9A enquiry whether random or aspect, have you considered seeking formal advice

[tomwhite_]

i understand its a compliance check, in which the inspector is looking at the whole of my self assessment return.
Hmrc wanted to see if any tax was due to them, based on my business profits, and there is none.

No i have managed to deal with this myself so far as im certain ive paid the right amount of tax, if any was due.

[tomwhite_]

it is a section 9a enquiry.

[LozaACCS]

It would be difficult to be dogmatic without being aware of the full facts but although accepting the powers available under Sch 36 FA 2008 to the inspector I would,given the information available politely decline the request on the basis that a S9a enquiry is an enquiry into a specific year the information you are being asked to provide could very well impact on previous years for which it seems that no enquiry has been opened.
I would further request that the officer confirms whether the information requested is in accordance with the powers available under Sch 36 and that the request is made using those powers and that if that is the case then you wish to appeal against that notice on the grounds that you are prepared to disclose information relating to previous years, but have not been asked to and you remain willing to make such disclosures as are specifically requested.

[tomwhite_]

hi i have read the following from the inspectors handbook.
https://www.gov.uk/hmrc-internal-manual ... ual/em3805
https://www.gov.uk/hmrc-internal-manual ... ual/em3540

so far i have made a voluntary disclousre, in which i have made a mistake in my p+l accounts, i understated profits due to a mistake i made with one of my expenses claimed being overstated, (the disclousre doesnt affect my tax liability, as profits are below personal tax threshold)

it states in the handbook in the above links, that if profits are understated for the year they are enquiring about they can request such info.
i have been forthcoming about this mistake, apart from this everything else has been correctly declared.

If this is what it takes for the enquiry to end then im quite happy to provide this info to them? is it wise to do this?

my profits have dropped over the last couple of years, and they state its a random check but i suspect it could be due to this drop in profits.

[tomwhite_]

he could have also requested to

https://www.gov.uk/hmrc-internal-manual ... ual/em3540

"You should normally ask the taxpayer for a statement of assets and liabilities that reflects the position at the end of the accounting period or return period under enquiry. This will normally be sufficient to enable you to establish the level of assets held, and confirm your conclusion about

the level of omissions, and
their ability to fund a settlement."

im guessing here he wants me to fill in a statement of assetts to understand whether i am able to pay any penalty charges hes considering giving to me? i do accept this may be inevitable as i did make a mistake on the return.

[tomwhite_]

"Alternatively, it may be sufficient and easier for the taxpayer to provide you with a statement of assets and liabilities at the present time. If means are an issue you will need a statement at the present time, to decide whether we can accept a substandard offer. If you are preparing a detailed means test you may also need a statement that shows the position at the beginning of the accounting period."

https://www.gov.uk/hmrc-internal-manual ... ual/em3540

again something i read in the handbook.

If this is the case, it would be just easier for me to put my assets to the present time as figuring out what my assets were during the year up for enquiry would be difficult for me to determine?

[tomwhite_]

anyone have any thoughts on my original question

do i need to put all my bank accounts which belong to me on the statement of assetts,liabilities, business interests form? (even if i havent used them and they are lying dormant and the balances on them are £0?)