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.
- R&D tax claim 194 3
- Tax Allowance on University Course 30 1
- Gift to employee 341 9
- Transfer of a business 93 1
- You think HMRC are inefficient? 421 7
- I hate HMRC's voice recognition system - The Inept Interrogator 1,098 22
- Company Pension Contributions 2013/14 63 3
- Investment property where tenant lives rent free 393 8
- VAT Cross Border Invoicing 98 2
- Sage Import Data 286 6
- Slight twist on employment related securities 235 1
- Child and Working Tax Credits and sudden increase in investment income - does this trigger a claw back? 75 2
- Best time software for small practice? 196 2
- Residents Association Corp Tax 308 13
- private to company car? 354 9
- Which address 994 11
- Profit accruing in fiduciary or representative capacity 97 1
- Do I charge VAT for event I held in Paris 256 5
- PAYE Refund Farce At HMRC 954 15
- Car maintenance costs deductible against CT 256 6
- DTR : TIOPA 2010 Section 42 471
- CTA study material 451
- Sect 102 TMA 1970 324
- Pre incorp expenses 302
- Relief on French Tax Deposit? 260
- Anyone have clients that use Pay4Later to offer customers credit? 248
- What is the tax position if I am working overseas but via a UK agency? 202
- Gift Aid after 5 April, before 31 Jan - Tax Credits 150
- Anybody have that old ACCA Student Training Record (STR1) 134
- Taxation of partners in an LLP following new rules 130