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Where Taxpayers and Advisers Meet

Satements of Personal Assets and Liabiliteies and Business

Taxweb
Posts: 2
Joined: Wed Jul 08, 2009 11:29 am

Satements of Personal Assets and Liabiliteies and Business

Postby Taxweb » Wed Jul 08, 2009 11:47 am

Hi

Having just been through Tax investigation and now arrived at the last milestone, I have been asked to complete a Statement of Personal Assets and Liabilities, and Business Interests form (MS142).

I am reluctant to complete this form because I remember very clearly the words of the inspector, which were do NOT sign the form if you are unsure about it.

The questions I have are:-

Should I complete this form? Is there anything I should be aware of? The forms have questions in there about our children goods, Investments, collections etc . To be honest ( in the moveable property section) I am not sure how much detail to put in, for instance 6 dining chairs, a Vacuum cleaner, TV and teh list goes on.The otehr stuff like Land etc is straight forward as I do not own anything else.

Oh both my wife (company secreatary) and I ( Director) are the business owners. So do I only include my stuff?

I would appreciate any guidance on this subject. I am sure I shall more questions as we go along.

Speak soon

Taxweb

robbob
Posts: 2995
Joined: Wed Aug 06, 2008 4:01 pm

Re: Satements of Personal Assets and Liabiliteies and Business

Postby robbob » Thu Jul 09, 2009 8:52 am

Hello Taxweb

If you have any queries speak to the inspector involved they should be able to help you.
It may be sensible to write down any advise they give and keep as a note.
The questions are not there to try and catch you out - they are not normally interested in normal household items of little value so a summary of aprpox value should suffice.

Taxweb
Posts: 2
Joined: Wed Jul 08, 2009 11:29 am

Re: Satements of Personal Assets and Liabiliteies and Business

Postby Taxweb » Fri Jul 10, 2009 10:27 am

Hi Robbob

Many thanks for teh guidance. I shall speak to them. I was just a little worried why the mention the signature element was so important, "if in doubt doNOTsign".

I shall discuss the subject with them and go from there. The real worry is how much detail to put in. I guess I shall round up House contents and mention exclusion of Children items.

By the way, do you have to keep this updated, say we sell something and get something else.

Thanks again.

Taxweb

JHB
Posts: 6
Joined: Tue Jan 20, 2009 6:07 pm
Location: London - National Coverage

Re: Satements of Personal Assets and Liabiliteies and Business

Postby JHB » Tue Jul 28, 2009 11:02 am

The Statement of assets and Liabilities is an integral part of the enquiry. It will help to show the inspector that you have assets that are well beyond your means. ie declaring £30,000 and owning 3 million pound houses.

The inspector will have given you a date to compile the statement for. This is effectively a snap shot of your assets at that date. It is not a live document and does not need to be updated. You should group items of insignificant value together and list out items over a deminus level - agree with inspector, usually about £1,000.

If I were you I would be more concerned with signing the Certificate of Full Disclosure as this is the document that can get you into very hot water if you sign it incorrectly.

wamstax
Posts: 1931
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Satements of Personal Assets and Liabiliteies and Business

Postby wamstax » Sun Aug 02, 2009 11:43 pm

Yes this is an important document and of course the annotation that false statements can lead to prosecution is enough to put off any level headed person who has got caught out - whether knowingly or not.

As JB says you need to pay particular attention to both the MS142 (Satements of Personal Assets and Liabilities) and also the Certificate of Full Disclosure.

Basically it is in relation to these forms that experienced investigation advice gives you the confidence to deal with them adequately. Your tax adviser should go through each of the forms with you explaining what each part (or sometimes even each word) requires and ensuring that you understand the needs of the form.

When anyone talks about you gettign problems from completing these forms what you have to be sure is that you are not stating something that you know to be factually and materially incorrect (with a view to continuing to evade tax and also stop the tax inspector doing his job in assessing the correct amounts of tax interest and penalties. If you knowingly do this then matters will be very serious indeed if your misinformation comes to light in the future and there would be no gaurantee that the HMRC would be looking to settle for tax interest and penalties that time round
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

planetsahil
Posts: 1
Joined: Fri Nov 13, 2020 11:44 pm

Re: Satements of Personal Assets and Liabiliteies and Business

Postby planetsahil » Fri Nov 13, 2020 11:48 pm

Hi, I am going through the same investigation, can you kindly let me know about the outcome?

wamstax
Posts: 1931
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Satements of Personal Assets and Liabiliteies and Business

Postby wamstax » Sun Nov 15, 2020 2:50 am

Hi there without being picky you cannot say that you are going through the same investigation.... it has to be another investigation and presumably HMRC have got to the stage where they have almost got there (i.e. they have proved that you understated your income for one or more years and that tax interest and penalties are going to be due).

If however they are not at that stage (i.e. having proved that your records were deficient and/or income understated) then I would consider why and for what reason do they want a SOA&L at a stage where they do not have established understatements or inadequate or incorrect records of income and expenses.

If you have any doubts you should consult your tax adviser and if that person is not able to deal with it he should perhaps take a second opinion from someone who can.....

HMRC officers are not past conducting fishing exercises although these are certainly not authorised by the Board of Inland Revenue and are not allowed.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites


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