HMRC Debit & Credit Card Transactions Check

Random check or do they have information?

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I've received a copy of a letter to a client from HMRC inviting them to check the 2015/16 tax return for income declared re card transactions.

The business was a part-time after school club and I received the download of the transactions from the client from WorldPay so satisfied with the information I was provided.

Is this kind of letter a random fishing expidition or do HMRC know something?

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By jonmst2
25th Jul 2017 11:45

I have received one of these letters for a client and would welcome advice as to what action to take - if any. All credit/debit card transactions are paid directly into a business bank account from the card processing terminal.
Do HMRC know something I don't ?

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By codling
25th Jul 2017 12:05

This is a HMRC campaign where the letters are semi random. They are looking to see whether cash and other takings stack up with the known card transactions.
At the moment if you phone and advise that you are happy that everything has been included then they will tick you on their spreadsheet as having nothing else to declare.
At some point they will review their spreadsheet to see whether any are worthy of enquiry.
At the time of sending these letters HMRC will have very little idea about the size of the business or how it operates.
It would, however, be as well to do a belt and braces check to see that everything does stack up such as occupancy rates for B&B's etc. before phoning HMRC.
There was also a glitch in sending agent letters which were sent 10 days after those for the businesses. The copy letters will not have the same date as those issued to the businesses.
Also watch out that they are actually issued to the nominated partner, if a partnership. Those I have seen are addressed to the business and "Dear Sir or Madam".

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