On completion of accounts, I get these signed by client, and myself, and send to tax office together with tax calculation and capital allowance schedule. Is this correct or am I giving them to much info. Or should I send tax return only.
I am concerned because I have just acquired a new client whose previous accountant died. I see he is claiming capital allowance for van 100%, and a car 50%, and he is just a decorator. If I just enter the amount on tax return they would not notice. If I send tax calculation as I normally do, they might query this. He is also claiming car insurance, repairs etc @ 50% for the car. My policy is only to make claims for actual expenses incurred if the van is off the road for some reason.
He is also claiming a number of allowances for tools, cleaning and protective clothing.
My overall concern is that he could be investigated by the Revenue, and more so if I send all the attachments as I usually do with his tax return.For the moment I have completed accounts on the same basis as his last accountant, but I have warned him about my concerns.