Self employed trader in mainly cash business hasn't kept records of cash in & out of the business separate from personal cash. The revenue contend that by assuming drawings were taken out the business at the same level each week (not correct) this would result in negative amounts therefore more money must have been received. If the cash flow was reworked to show more realistic seasonal drawings then the negative balances would disappear.
The traders problem is that he didn't keep records or count cash at any time as he thought that keeping copies of all sales/purchase invoices and keeping records of cash sales would be sufficient.
The revenue can't prove that undisclosed sales took place but neither can the trader prove they didn't.
What is not in dispute is the fact that insufficent records regarding cash reconciliations were kept or that personal & busines money were kept separate.
The revenue suggested a negotiated settlement.
Is this worth taking to appeal & what would be the chances of winning? - I know, how long is a piece of string but if anyone has any experience of this sort of investigation comments would be appriciated.
- Trade creditor journal 13 1
- Working out private usage for a Taxi Driver? 378 9
- How much of your work is admin? 635 6
- HMRC Distraint 70 1
- TaxCalc Accounts production 132 2
- Fines for filing 12 months of FPS on one submission 215 3
- Running two businesses from the same premises 412 5
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 109 2
- Invest in ''buy to let'' property 1,367 42
- Nominal Ledger 392 11
- Gave wrong info to client about tax due 591 20
- Base value unavailable re. Capital Gain 191 2
- Old CGT loss 217 3
- Gov.UK = NOT OK! 202 3
- Paper tax return 167 4
- Start up allowance? 389 12
- Will I need to resign? 231 1
- Penalty for late PAYE registration? 255 3
- AIA or IFA 460 7
- Surely not? 472 10