Clients return under enquiry.
Low income tradesman.
After much correspondence the inspector has identified approx 500 miles of "unaccounted for" miles travelled in the year. (using assumed miles per job invoiced, assumed petrol consumption etc - in other words very theoretical).
In the year in question the domestic expenditure exceeds clients funds available from business by less than £2k. Also in that year our client had a lady friend living with him, fully employed and contributing to the household budget. Of course no records were kept of this arrangement but £2k is not a great deal.
The inspector is refusing to accept that this arrangement explains the discrepancy stating that he would not want to demand eg ex girlfriends bank statements etc but could if the client wants to rely on this.
The inspector has calculated extra sales using a fraction based on the "extra" miles against theoretical business miles and come up with what I consider to be a very dubious figure.
Not only that he wants to then extrapolate back two years and increase those earlier years.
As with all these small cases time is racking up and I could do with some inspiration. Ideas please?
knuckles
Replies (2)
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evidence
Sorry, but you have two choices. Either provide some credible evidence from the lady friend and be prepared to go to the Commissioners or accept the inspector's assertions on commercial grounds.
This sort of case illustrates the importance of having professional fee insurance for small clients of this size, but unfortunately in this case presumably there is no cover and 'the horse has already bolted'.