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Where Taxpayers and Advisers Meet

Second successive tax enquiry

Cliff Top
Posts:11
Joined:Wed Aug 06, 2008 3:50 pm

Postby Cliff Top » Wed Apr 30, 2008 4:30 am

Can you argue against a second tax enquiry?
And how can you fight the second one not using the original accountants?

We were 'enquired' into in the 04-05 yr and a mere £97 vehicle anomaly was the only problem found. I have just received the dreaded letter again for the 06-07 yr.
I run a small shop and keep clear books, yet still last yr the enquiry was dragged out to 10 months by our (now EX) accountants. They are a reputable accountants firm too, not just someone doing it in their spare time. No matter what correspondence he sent there were always more questions until finally we insisted to have a meeting with the inspector and all was easily resolved, and the revelation that the enquiry was triggered by a malicious ex partner sending some paperwork in to try to 'make' a case.
I have no wish to use these accountants again although they did prepare the books for the year we are now to be enquired into. They will however have to be asked for the calculations to resolve some figures.
Are HMRC really allowed to just keep enquiring/ hassling?.. I can't accept its 'random' selection.. and I can think of many more local businesses that would offer a better stone to look under.
What options are there? Can you argue its unfair as the time and expense proving everything is above board is depressing.

Cliff Top
Posts:11
Joined:Wed Aug 06, 2008 3:50 pm

Postby Cliff Top » Wed Apr 30, 2008 4:42 am

I meant to say 05-06 yr not the 06-07yr.

robbob
Posts:3066
Joined:Wed Aug 06, 2008 4:01 pm

Postby robbob » Wed Apr 30, 2008 5:24 am

Hi Cliff

You will not normally find out the reason for an enquiry so you will just have to follow this to its conclusions as they have the right to query every year if they wanted to.

If this is again af full enquiry (rather than just asking for breakdown of a couple of boxes) i would ring the inspector to advise him you have just been through a long enquiry where you came out with a "clean" bill of health and ask if there is any reason why they want more information. He should not be going back over old ground that has already been established to be ok, unless he has good reason to.

gilderda
Posts:16
Joined:Wed Aug 06, 2008 4:08 pm

Postby gilderda » Wed Apr 30, 2008 7:01 am

Cliff,

Given the meeting you held in the previous enquiry was a useful aid to drawing it to a conclusion, you may want to consider offering to meet the inspector right at the beginning of the process this time around to establish exactly what it is they have concerns over. Could be a useful time saver for all parties.

As robbob says, HMRC won't tell you exactly why you have been selected for enquiry, but if they ask questions about systems and processes which were covered in the previous year then they should be asked to go back and check their own files for the answers.

wamstax
Posts:1948
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Postby wamstax » Wed Apr 30, 2008 12:55 pm

Given the HMRC system it is just feasible that the enquiry has been started without referring back to the last enquiry.

Why don't you ask them whether they have looked at the previous enquiry papers and if they really want to go down the same route again if they are acting on information that has been sent in to "assist2 them.

Please be careful however IF there was and has been something wrong with your tax liabilities that you didnt tell them about.

Be careful however as unrepresented taxpayers can get themselves into hot water by not appreciating the difficulties they may be creating by giving information that may have more sinister meaning to the HMRC officer.

regards and hope this helps
bill@wamstaxltd.com
http://www.wamstaxltd.com
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

gilderda
Posts:16
Joined:Wed Aug 06, 2008 4:08 pm

Postby gilderda » Thu May 01, 2008 12:03 am

And another thing...

If this enquiry goes back over old ground and does not result in any adjustments to the tax due, I would be tempted to apply for compensation from HMRC to cover any professional fees incurred.

You may not get it, but I have known it happen.

pallet
Posts:49
Joined:Wed Aug 06, 2008 3:25 pm

Postby pallet » Wed May 07, 2008 4:06 am

If you have had a agreement with the inspector to end their enquiry then they cannot reopen those years so just send then the books for 05 06 and tell them to get on with it no account need yet . The revenue can then come back to you and thats the time to see what the problem is none I expect

Cliff Top
Posts:11
Joined:Wed Aug 06, 2008 3:50 pm

Postby Cliff Top » Wed May 21, 2008 1:24 am

Thanks for the advice. There is a year between the enquiries and we became a Ltd company too. I will just send off the stuff and see what they come back with. Cliff

wamstax
Posts:1948
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Postby wamstax » Sat May 31, 2008 4:19 pm

Oops now you tell us!!! You have incorporated so it may just be an enquiry for some other risks. Is it a full enquiry or an aspect one where they only ask a couple of questions?
regards
bill@wamstaxltd.com
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

pallet
Posts:49
Joined:Wed Aug 06, 2008 3:25 pm

Postby pallet » Mon Jun 02, 2008 1:08 am

Its not clear to me who the enquiry is on you T/a or the LTD company
The company has not been going long so I dont think you should read to much into it. The companys agent should be the man to sort it out to save you the tress


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