How do I combat this particular Inspector......my longest ever running Investigation
I have had an investigation running for some two years, mainly as a result of my client being unable to provide copy building society account statements - the B.Soc in question admitting that the records had been lost.
Lo and behold, when the statements did appear, there were 'unexplainable' bankings of around £6500, together with his car sale proceeds and board/lodgings money received from his son.
I made the client aware that anything he could not explain would have to be assessed and most likely back dated over a number of years.
I spoke to the Inspector, who freely admitted my most recent letter had sat on his desk for six weeks. Two days later I received his proposed amendments to which I did not know whether to laugh or cry. The stated net income had been uplifted from £14,000 to £42,000 based on what was described as 'all unidentified bankings into the Building Society'. All other aspects of the enquiry were concluded.
When I rang him to point out that his list of unidentified bankings actually included £20,000 of inter-account transfers (to accounts he had already inspected) plus the car sale and housekeeping monies - I gave him the opportunity of redoing his paperwork rather than waste my/my clients time based on such nonsense.
When I rang this morning, he now states that they have changed their minds and will be reassessing based on a 'business economic model' that states that a 40 year old builder with children should be earning £200 a day in labour.
How can I combat this man's approach? He is intent on assessing my client by hook or by crook on over £40,000 net income when the true figure even after including the ommissions, is around half that.....
Client has admitted his records were incorrect, but the Revenue are now seemingly using this as a reason to assess him on arbritary amounts that bear no relation to reality.
I would be grateful for any assistance....yes the client has errored, but he was willing to top-up his mortgage to pay all back taxes. If the Revenue succeed in their approach it will bankrupt him.
- Annual director payments for a small limited company 226 5
- Relevant life plan 218 6
- Flat Rate VAT - reclaiming VAT on Capital Purchase (bought on lease hire) 137 4
- The return 929 28
- Directors loan - no longer a director 101 1
- Why .... 538 6
- HMRC Unpaid Debt Collector 512 10
- Any advice on large 55 inch + computer monitor 136 1
- Pylon compensation - what am I missing? 378 6
- NI Contributions in order to claim state pension 464 10
- Limited Company expenses 289 7
- Formating cells in Excel 274 6
- UK taxation of income from property in Cyprus 190 4
- Advice needed for Annual Accounting Period - companies house 290 8
- Tax relief for backdated pension contributions 612 17
- Freehold Property Depreciation 355 15
- VAT - E-commerce site (middle man only) - like Not on the high street 116 2
- More Auto enrolment (sorry) 714 2
- Claiming VAT without invoice 321 4
- Non domicile swiss bank 81 1
- Possible Partnership? 578
- Tax and accounting treatment on long lease granted from freehold 494
- New Fangled Penalties 384
- Clubs and Taxable Income 312
- Purchase of property freehold - capitalisation of costs 286
- Closed PAYE schemes and auto enrolment 235
- Loans to other companies 234
- Lenovo – Superfish & Komodia – is your PC vulnerable 200
- Outsource Data Entry 192
- Moving away from CCH software 177