I enjoy photography as a hobby and have been called upon by my friends and family on accasions to take photographs. (Weddings etc.) These I have done at extremely favourable rates, at cost or, indeed, free of charge. Any "profits" have been used to update my photographic and computer equipment.
I am now the subject of a tax investigation in which I have answered their queries regarding every item on my bank statements. I have proffered what I genuinely consider an amount of unbanked cash (£250) only to be informed that they think it should be £1,750 based on what a "like business" would do.
I do not regard myself as running a business and, as I am the one who has to prove to them that I have not received this cash, I am at a loss on how to proceed with this.
As a point of interest, my total "gross income" is only around £2,500, but they have decided to take my expenditure and work backwards using a figure of 80% GRP (a "like business") which in no way takes into account work done at zero profit or for charity.
I know this is only small fry to you guys but I would welcome any tips as I am now at the point of having to pay money I do not owe or lodge an appeal to the Commissioners.
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