A self employed bricklayer client, under CIS, does not wish to claim expenses (mainly motoring at AMR) so as to increase his SA302 figure for a mortgage application. He is willing to for go an approx £1500 tax refund ! There would be no accounts for me to sign off but I would be involved in preparing his Tax Return which would have an artificially high self employment profit figure. I am not at ease with this but I suppose no one is obliged to claim expenses if they do not wish to. I would appreciate any comments or guides as to whether not claiming expenses in these circumstances involves fraud or any other criminal activity.
28th Sep 2011 18:48