Company enquiry, Directors bank statements requested
Limited company, selected for an enquiry, (2008 year end)
HMRC asked for a meeting which was attended and then issued a letter asking for accounting book and records. After their review of the records they then asked numerous other questions but also asked for copies of the directors personal bank statements from 2005 to 2009 or for them to sign mandates so hmrc could request them from the bank.
We answered the queries hmrc raised but asked them to reconsider if they really needed the bank statements in light of the information provided in that letter.
The 'tax specialist' at HMRC has now replied stating they beleive there are cash sales undisclosed in the accounts (client is adamant there are none) and quoted various sections of the enquiry manuals and has reiterated that the bank statements need to be sent in or they will obtain them formally.
2 questions really -
Firstly, is this normal procedure to ask for these personal documents so early in the enquiry?
secondly, is it reasonable to ask for directors bank statements for periods prior to the year under enquiry for the company? Anyone got experience of this as the questions/answers from HMRC seem to be standard responses.
- Can I claim mileage? 218 6
- limited company for IR35 132 1
- Auto-Enrolment 3,925 185
- Ir35 test 95 2
- Money laundering POCA 281 5
- Income recognition - release of product from a factory 127 7
- payroll software 213 3
- Mexican student in UK 164 4
- CIMA accountant wants to start consultancy 196 2
- Ownership of land - declaration of trust 53 2
- Finally a winner from HMRC!!! 255 2
- Annual Management Charge Rebates and Self Assessment Tax Return 173 1
- Partnership registered in error. No activities with view to profit. 142 2
- QuickBooks, Xero, FreeAgent and ClearBooks 882 19
- Dividend in specie 268 8
- Partnership Tax Return Deadline 110 1
- VAT on imports and the Flat Rate Scheme for VAT 197 9
- client threatening legal action 1,879 28
- Twenty signs your practice is bad at tax 736 8
- Partially exempt? 264 9
- Skandia using wrong address 500
- FHL, period of grace and Entrepreneur's relief 283
- Does anyone use PS Financials accounting software out there? 281
- Employee rewards 262
- Legislation access for part-time sole practitioner? 234
- Rental Property W&T And Equipment 226
- Gift of reversion and lease into trust by two different people - later PPR 225
- EPS Analysis - Change to EURO 216
- Etax Australian 175
- LLP in Construction Industry 127