CIS expense checks

CIS expense checks

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I've noticed a sharp increase in HMRC wanting to inspect my CIS clients expense claims in this year when compared to last year. Granted, my client base has increased rapidly in one year but as a proportion I never had any clients expense claims investigated in the past.

I'm wondering, has anyone else had this?

I can only assume it's either:

  1. Luck of the draw
  2. An active policy on their end
  3. They suspect me of being a dodgy agent.

I'm naturally a paranoid person so I'm going towards number 3. I think it could possibly relate to the fact that only one of the clients they investigated had lower motor costs than what we claimed but this was an error on the clients part. But surely they deal with that many hundreds of thousands of CIS tax payers one daft thing like this wouldn't put me on any sort of "watch" list, would it?

Any insights are appreciated.

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By SIMPLETON
08th May 2014 13:57

CIS EXPENSE CHECKS

 

 It may be that if a number of your clients, were previously employed,or employed by the

same employer, prior to being a self employed sub contactor,that HMRC,are wondering

whether they are falling within the IR35 rules and are looking at them all to ascertain this.

Alternatively,if they all have a higher than average expenses to turnover ratio,they want

look at any receipts that have been kept.

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