Please Help!!!??

kell · Postby **kell** » Tue Mar 18, 2008 2:31 am

Please help-Any advice would be really welcome!! My husbands small business is being ivestigated without any real concerns, however the taxman has now moved on to our personal a/c's and copy statements have been requested. During the year in question we bought a new house and transferred all our savings and childrens savings into our joint a/c to enable us to pay a greater deposit on the house.
When I look back on the statemnts (4years ago) I cannot account for all of the deposits in the account as there really was money coming from all accounts and family help etc. Do I have to be able to account for all amounts i.e if its a cheque provide name and address of payee etc and can the taxman follow this lead on or will they take my word for it? If we have deposited cash do we need parents to back this up-as we are involving so many people this does't seem right but we are worried how far this will go,
Thankyou for any welcome advice,
Kelly

wamstax · Postby **wamstax** » Tue Mar 18, 2008 3:53 am

The first question I have to ask is whether you already have a tax enquiry adviser. If so he/she would need to be sure that HMRC have shown the business records to be unreliable or that there was clearly a means problem in the enquiry year.

If either of these scenarios apply then any unexplained monies (whether cash used to fund your lifestyle or deposits to bank accounts) may well be sought to be attributed to additional undeclared profits.

If you do not have a tax adviser then I suggest that you engage somebody that is capable of dealing with explaining matters to HMRC (and getting the explanations accepted)
regards and hope this helps
bill@wamstaxltd.com
http://www.wamsataxltd.com

robbob · Postby **robbob** » Tue Mar 18, 2008 8:20 am

Hi kell

You need to try your hardest to show the source of all monies banked.

The taxman may want further evidence that this person had sufficient funds to transfer monies across.

He will want to resonably satisfy himself that he can prove there has been no understated sales.

I would always keep full documentation of funds banked into your personal account for this very reason.

Hopefully if he has seen statements for a long period and this is a one off situation with adequate explanation/documentation then he is more likely to accept the fact that these bankings are indeed not income.

manno · Postby **manno** » Tue Mar 18, 2008 9:26 am

What is the year of enquiry and when was it opened?

kell · Postby **kell** » Tue Mar 18, 2008 1:53 pm

Hi, Thanks so much for your advice/comments. I will certainly keep better records in future.The year in question is 2004/5. What I am concerned about is if I say a cheque deposited was from Mrs A?and can justify this will they then check that out? I have been in touch with my bank to see what help they can offer and basically all they tell me is if the deposits were cheques or cash?
Thanks for all Your Help,
Kell

robbob · Postby **robbob** » Wed Mar 19, 2008 8:49 am

Hi kell

It is hard to say but they may well ask for some further evidence if they have any reason to suspect that things are not as they should be.
You could perhaps get your relation to confirm in writing that they transferred you the money.
Note i would only give the revenue what they ask for and if the information is not available i would advise speaking to the revenue officer and advising them of the situation.
If your relative is not self employed then they would not really be obliged to keep bank statements so this may be a reasonable reason as to why they would have statements readily available.

wamstax · Postby **wamstax** » Sat Mar 22, 2008 6:37 pm

Hi there from past experience I can tell you that the bank can supply the sort code and account number source from where a cheque was deposited in your account and if sizeable possibly also supply the name of the person that wrote the cheque
regards and hope this helps
bill@wamstaxltd.com
http://www.wamstaxltd.com

bigbobo2 · Postby **bigbobo2** » Mon Mar 24, 2008 4:55 am

in reply to your last answer on the banks how long are bank records held for ?to give proof & details of cheques raised ,cashed ?

wamstax · Postby **wamstax** » Tue Apr 01, 2008 2:32 am

Generally banks hold such information for at least 6 years however with the microfilming of the documents I suppose the time limit is infinity
regards and hope this helps
bill@wamstaxltd.com

davidbarry · Postby **davidbarry** » Mon Apr 07, 2008 9:12 am

Hello Kelly
I am just reviewing the correspondence on your dilemma and wondered if you needed any further advice.
Please do not reply to the Inspector (if you have then phone me with your contents) without talking personally to an accountant /tax adviser. I am very happy for you to telephone me for a free no obligation chat where I will give you advice with no charge) even if you decide at a later time to try and brave an answer yourself.
regards davidbarryaccountant.co.uk on 020 8252 7018/07877671423