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Where Taxpayers and Advisers Meet

How long does a tax enquiry last

Posts: 4
Joined: Wed Aug 06, 2008 3:16 pm

Postby fpglobal » Mon Jan 24, 2005 9:47 am

Being mainly PAYE and only using my SA to claim back my expenses I am subject to a tax enquiry of the whole return.

I work for a US company in the UK, buy company shares via an employee purchase scheme and use my own vehicle for work and claim back expenses.

On 20th Nov 2004 I received a letter from the Inland Revenue stating that they intend to enquire into my tax return for 2002-2003 as they believe it was incorrect and I had additional income. The year I moved house.

I sent them everything they asked for. I phoned them and explained that my nephew was staying at my old house rent free and I had no mortgage on it as I had paid that off years ago and also I had completed my company shares under UK (only just found out they should be on foreign pages). The tax inspector said he will look at it promptly.I phoned again on the 24th Nov to make sure they had received everything and was advised that they will be carrying out a full investigation which will have a 4 week turn around.

It has now been 2 months and I've not heard anything and I am worried about phoning him in case I get dragged over the coals (he was a bit short and not very pleasant when I phoned the 2nd time).

Is it normal to take this long and not hear anything?

Posts: 1797
Joined: Wed Aug 06, 2008 3:15 pm

Postby Instinctive » Mon Jan 24, 2005 1:46 pm

Under self-assessment rules, the Inland Revenue can commence an enquiry without telling you why they have done so. They could even pick your number at random and there is nothing you could do about this except to answer theie queries.

In your case it seems from your reply that they think you have not declared rental income from your property which according to you was occupied rent-free by your nephew.

Normally they have a turnaround time of approximately a month before replying. In your case this has not been helped by Xmas holidays etc.

I should just send a polite reminder and request a reply within 14 days. Immediately after this, address the next letter to the District Inspector.


Posts: 4
Joined: Wed Aug 06, 2008 3:16 pm

Postby fpglobal » Fri Jan 28, 2005 1:10 pm

Thanks Ramnik.

Given that I have supplied all the information they have asked for could I ask them to close the enquiry and send a closure notice?

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