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Hi All

Can anyone provide any tips/guidance. sole practitioner here with a client who had a visit from HMRC today citing P10 Sch 36 FA 2008. Nothing untoward happened other than the client feeling intimated.

The client is a cash based business with t/o less than the VAT threshold, but it did cross the threshold for a period of two months (when taken on a 12 month rolling average) in early 2016. Since that time t/o is around £65k per annum (on the same 12 month rolling average). The spike in business for those two months related to an employee who had their own client base and worked for a few months. The employee left after a few months and some of their client base left with them...

I am after any tips/advice for a quick resolution...

If HMRC cite Sch 36, you should make sure any response does not give the impression of seeking to avoid your responsibility. Explain the facts, and give evidence of the employee joining and leaving (payroll records?), and provide any other evidence to explain what has happened.