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Where Taxpayers and Advisers Meet

Help! Sole trader HMRC investigation

wamstax
Posts: 1828
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Help! Sole trader HMRC investigation

Postby wamstax » Tue Mar 13, 2018 7:47 pm

It fully depends on the facts as presumably the sale was conditional on it being up to spec if the person had to travel to collect the vehicle. At least it is worthy of carefully considering the agreement that was in place and any conditions attached to the sale and who was responsible for the vehicle up to the point of collection.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

classicmechanic
Posts: 15
Joined: Sun Dec 03, 2017 5:51 pm

Re: Help! Sole trader HMRC investigation

Postby classicmechanic » Fri Mar 16, 2018 8:19 pm

There was a second payment in July , a remaining £100 for this vehicle ontop of the 2400 paid in June. The receipt was done in July and has both payments on it. They have asked for the receipt so today I emailed a photo of it, and a screenshot of the £100 payment being paid via paypal. Hopefully that will put that one to rest. I have queried whether they are supposed to be asking for my personal bank statements 2011-2016, I expect I will hear back on Monday.

A proposal I put foward to take 50% of the unknown personal bank and Paypal payments as income has been rejected, they want to take all of it, the ones I can't account for anyway, they come to about £900. I expect they will be busting to extrapolate that back over all other relevant years as well.

wamstax
Posts: 1828
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Help! Sole trader HMRC investigation

Postby wamstax » Fri Mar 16, 2018 9:23 pm

Let’s smell the coffee... so you can’t explain £900 out of how much ? Surely they are arguing about more than £900 and how much (if anything ) have they proved you omitted from your accounts for the year?
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

classicmechanic
Posts: 15
Joined: Sun Dec 03, 2017 5:51 pm

Re: Help! Sole trader HMRC investigation

Postby classicmechanic » Tue Mar 20, 2018 12:17 am

900 out of trading turnover of a about 34k (profit 4K)
but i did get my rental figures wrong for that period (14/15 tax year) by £2500

classicmechanic
Posts: 15
Joined: Sun Dec 03, 2017 5:51 pm

Re: Help! Sole trader HMRC investigation

Postby classicmechanic » Wed Apr 25, 2018 5:17 pm

Well folks.. finally an update, after me telling HMRC they can't possibly account for the same transaction in 2 years, and that I will not accept them moving it from one year to another to make it look like I made an error, it all went quiet for a bit apart from them requesting all my personal bank statements to back up my rental income figures. They were suspiciously silent for a whole month.

It was therefore rather a surprise that today I received contact from HMRC saying they have DECIDED TO ACCEPT MY FIGURES after all. The amount they are asking for in tax, penalty, NIC etc is now under £2000. Basically, I appear to have won my appeal and shall be paying the correct amount of tax!

https://imgur.com/a/rZjDZ0e

I have said OK to this. Just got to send 'em a cheque.

I feel I could not have done it without having found this forum and having the helpful advice from you guys, it made such a difference feeling like I was not totally on my own, and there were some handy nuggets of information which I hope will be of benefit to others reading this topic.

Classic Mechanic

wamstax
Posts: 1828
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Help! Sole trader HMRC investigation

Postby wamstax » Wed Apr 25, 2018 5:31 pm

Glad you got a sensible solution BUT be careful in recommendations to others as no two investigations are identical and you had the benefit of a discussion with one or two peculiarities. I hope you’re not intending to write a book on handling HMRC lol 😂
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

robbob
Posts: 2594
Joined: Wed Aug 06, 2008 4:01 pm

Re: Help! Sole trader HMRC investigation

Postby robbob » Thu Apr 26, 2018 10:27 am

test huge smiley
:)

robbob
Posts: 2594
Joined: Wed Aug 06, 2008 4:01 pm

Re: Help! Sole trader HMRC investigation

Postby robbob » Thu Apr 26, 2018 10:28 am

doh


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