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Where Taxpayers and Advisers Meet

Revenue fishing expedition??

Posts: 2
Joined: Wed Aug 06, 2008 3:31 pm

Postby BryanS » Mon Nov 14, 2005 7:57 am

The Revenue are enquiring into our accounts (husband and wife limited company). The Inspector says that as we have paid some company expenses from our own funds he wants to see all our personal bank account statements. Is this right? If a director or employee of a non-husband and wife company paid expenses from their own funds on behalf of their employer surely the Revenue would not be able to ask for their bank statements. We have nothing to hide but why should we have to show ours?

Posts: 66
Joined: Wed Aug 06, 2008 3:14 pm

Postby ad » Mon Nov 14, 2005 8:04 am

In my opinion this doesnt sound correct to me. I would in the first instance ask them which specific transactions relating to the business they would like to see, or send copies of personal statements with only the relevant entries shown - ie blank out the rest.

If they are fishing - they will ask for more details.

Someone on this site will correct me if they do not agree.

Posts: 1019
Joined: Wed Aug 06, 2008 3:23 pm

Postby deanshepherd » Mon Nov 14, 2005 11:33 am

There was a similar discussion to this on AccountingWeb recently.

Take a look at the following link: ... rmat=%o-%B

Dean Shepherd
MMI Accountancy

Posts: 5
Joined: Wed Aug 06, 2008 3:32 pm

Postby HMIT » Mon Dec 12, 2005 12:53 pm

The fact is this:

The company has received funds. What the taxman wants to know is "does this relate to business income, or is it really "capital introduced"?"

One way, possibly the only way, of proving that it is capital introduced is to produce evidence in the form of bank statements showing the introduction.

Of course, you could refuse and the old taxman could treat it as business income and tax it accordingly.

Posts: 1019
Joined: Wed Aug 06, 2008 3:23 pm

Postby deanshepherd » Mon Dec 12, 2005 2:09 pm

The company has not received any 'funds' as far as I can see from the information given by the original poster.

The directors have paid for company expenses from their own resources for which I assume they have the invoices to back up the amounts claimed.

I believe this is over-zealous behaviour by the inspector.

Dean Shepherd
MMI Accountancy

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