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Is there a pattern?

Our practice averages less than 2 HMRC Enquiries a year.  Suddenly had 2 in a short space of time with no obvious reason. Both are self-employed due large repayments which, of course, were not paid whilst the Enquiry was in progress.  Is this a case of simply delaying the repayment or am I being cynical?  Has anyone else experienced likewise?

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18th Oct 2018 17:02

It would be pretty naive to consider it a coincidence that repayment returns, for all taxes, seem about ten times as likely to be delayed, examined, halted or otherwise mucked about with than returns where HMRC is owed.

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By GW
19th Oct 2018 12:51

While I haven't had a detailed look across our client recently, there also appears to be a correlation between speed of repayment/number of enquiries and HMRC's monthly amounts received, for example, in January HMRC receive more tax payments because of SA deadlines and December VAT quarters so repayments are made quicker and there are less enquiries and "security checks"

Monthly figures are here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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23rd Oct 2018 11:25

HMRC are now checking Agents that receive more than average repayments. Of course large repayments will attract more attention. Also if CIS deduction certificates don't agree that will spark an investigation. It's amazing that HMRC will send details of self employed deduction certificates yet try and get them to send deduction certificate details of Limited Companies. So I would say nothing to worry about, just routine.

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23rd Oct 2018 20:42

Our business has recently seen additional probing & investigation, but its been farcicle in some ways..
The second one (this year) was set off initially by the higher-than-previous-year's accountancy charges showing on the accounts for 2017.. (.. which had been to cover petty enquiries & deal with correspondence created over 2016 accounts..!! (As these enquiries have always resulted in nil increases in taxation liability, I feel like invoicing the tax department for the additional costs & time wasted.....but our accountant won't let me!!)

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