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.
- Company limited by guarantee having only 1 member 105 3
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 459 5
- flat rate scheme 121 3
- capital allowances - Demolition of a building 161 2
- Limited by Guarantee - Members 69 1
- VAT refund 308 3
- Are you going to Tick and Bash on 21 May? 1,279 37
- Turnover on a tax return 540 12
- incorrect old p60 561 15
- Company to buy shareholder land 111 4
- Deferred income - financial concern no recognised turnover CT600 181 1
- Posting Corp Tax to Sage Line 50 145 1
- Special dividends & CGT 201 1
- Director's Earnings when Drawing from Goodwill profit from Sole Trading Company sale to Ltd Company 185 1
- Networking 357 5
- Bank Interest Held by Solicitor During Divorce 276 2
- US company hiring UK citizens in UK 303 4
- What VAT to reclaim on van purchased on HP? 334 5
- Professional coaching claimable? 291 2
- IT Contractor 284 1