Mrs T had her personal tax return investigated by HMRC. They said the small private company she worked for had put through 10K on the payroll but she was only showing 5K on her tax return. We knew we had only put 5K through RTI and in the end (because HMRC called liar liar pants on fire) she in her capacity as company secretary provided details of the RTI company payroll submissions confirming only 5K was put through. The enquiry was closed.
Within a matter of weeks, an enquiry was opened into the company asking about consultancy expenses for the same period.
I suggested the company had already been subject to an enquiry (albeit via the company secretary's personal ITR) and the HMRC officer's first response was this was an enquiry into a different aspect of the company. This was consultancy fees not payroll. I then put my objection in writing and he has now come back saying the enquiry into an employee's tax return is not relevant. Is this right even though they requested details from the company to settle the dispute. Surely the company has already been 'the subject of enquiry for the same period'??
If this isn't enough, the company has been dormant and not trading for nearly 2 years now, with all bank accounts closed and all liabilities settled with no money left.
If the director ignores the request for information, is there anything HMRC can do. I had a bit of a look at the legislation and it looks like they can only issue penalties to the company which would seem futile and pointless?
And with no money left in the company, any investigation is surely going to result in nothing for the treasury anyway??
The books are fine, I just wanted to resolve this with the least possible hassle. I feel like we are being targeted/harassed and I don't want to pander to a request which appears to ultimately be fruitless? If I give in to this request when will it end....
Any help or advice would be very much appreciated.
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