paragraph 2 schedule 36 finance act 2008

paragraph 2 schedule 36 finance act 2008

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I am fighting with HMRC regarding my 2010 books. This was the worst year of my life !! Business was bad, it was touch & go in 2010 weather to continue or cease trading. We cashed in our 2 endowment  policies & used the money to live on as there was no wages for my husband & no drawings for me as after paying all the business bills & staff there was nothing left, I even put some of my own money into the business to keep it going. (business is back on track now !!)

We also claimed working tax credits.

I am now pulling my hair out with HMRC. I have had a meeting with them & my Accountant. We have explained everything !!! but just keep going round in circles. They are unhelpful & so rude.

I have supplied HMRC with proof of where the money we lived on came from, ie copies of our Cashed in endowment policies etc, etc..

Even my Accountant has had enough of HMRC regarding my business !!!!

There really was no money to draw from my business, even my kids refer to the years of  2009 & 2010 as the "Egg & Chips" years !!

HMRC now want copies of my Husbands Bank Statements, and on principle he is refusing as he is only an employee like the rest of my staff. We are sick to the back teeth with this investigation, we have done nothing wrong & have worked long & hard hours to keep my business afloat. HMRC should be giving us a pat on the back !!

Today I have received a letter saying if I refuse to give copies of my Husbands Bank Statements they wish to seek my approval to the issue of a 3rd Party Notice if not they will consider an approach to Tribunal. (P2 sch36 FA 2008) They also say that he can not be present at the application of the Tribunal !!!

My husband still refuses purely on his principles that he is only an employee, that they are his private bank statements and not mine, & as we have nothing to hide he wants to have our day at a Court. He says he will go to the European Human Rights Court !!  For me this is a waste of our time, BUT for my husband this is all about principles !!

SO..... my question is can they make him hand over his bank statements anyway ??

Any info would be a great help. Thanks for taking the time to read this.

Kind Regards

Dawn   

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Portia profile image
By Portia Nina Levin
19th Sep 2014 14:04

Start again

Are you subject to a formal HMRC enquiry?

If you are, and you think you have addressed all of HMRC's concerns, but they just keep digging, you have the right to apply to the First Tier Tax Tribunal to have their enquiry closed.

If HMRC want to see your husband's personal bank statements for the purposes of checking his tax position, they should him with an information notice under paragraph 1 of schedule 36.

He would then have the right to appeal.

If they want to see his personal bank statements for the purposes of checking your tax position, they should issue him with a notice under paragraph 2.

In order to issue him with a notice under paragraph 2, they either need your approval (as the person whose tax position is being checked) or the approval of the tribunal.

It is the case that  neither you nor your husband can be present at the tribunal. However, your husband must be given a reasonable opportunity to make representations, and the tribunal must be presented with a summary of those representations, and you must be given a summary of the reasons why HMRC wants the information.

If you have applied to the tribunal to have their enquiry closed, that would be one of the representations that your husband should make, then they will have to determine, whether your enquiry should be closed before permitting the information notice.

Your accountant should have told you all this.

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