Davids firm was dealing with an HMRC enquiry, which was proceeding alright except for two issues where he required the advice of AccountingWEB members (see 8 March 2007). The two issues were:
- HMRC have asked to see the wifes bank statements. She is not a partner of or involved in the husbands business, and no business entries have gone through her bank account. In fact she earns more than the husband and pays most of the home bills. She is reluctant to become involved in the enquiry.
- The HMRC inspector has asked a lot of questions about lifestyle. This has even extended to asking how much the bread that was used to make the childrens school dinners costs.
Can HMRC insist on seeing the wifes bank statements? And what about...