The check the clients are being asked for is mainly the last 2 quarter vat returns. At the end of the letter it reads as follows
Records- Corporation tax
Please provide copies of private bank and building society statements for any accounts held solely or jointly by ???? covering period 1 July 15 to 30 June 16.
If they are checking corporation tax return why just ask for private bank accounts for this period ? Is this normal or correct? Can i question this?
The clients have taken extra money but only tips about £100 per week, yes not correct but they are not with holding sales ect.
You are correct on the whole clients keep good records via quick books, all the invoices are kept going back over 6 years, vat is always spot on. I feel it may be just a little cash they have taken over the years, however as pointed out this can be a can of worms once opened up. Is it usual for HMRC to ask for personal bank accounts at an initial inspection?
My answers
This was a Travis Perkins Share Matching Scheme, they purchased £55,000 worth of shares.
The client seems to think tax was paid on the initial purchase of £55,000 and once received back into salary is due relief?
The check the clients are being asked for is mainly the last 2 quarter vat returns. At the end of the letter it reads as follows
Records- Corporation tax
Please provide copies of private bank and building society statements for any accounts held solely or jointly by ???? covering period 1 July 15 to 30 June 16.
If they are checking corporation tax return why just ask for private bank accounts for this period ? Is this normal or correct? Can i question this?
The clients have taken extra money but only tips about £100 per week, yes not correct but they are not with holding sales ect.
Monthly reconciliation was matched up to the business account if they were taking extra cash its not being shown any where.
You are correct on the whole clients keep good records via quick books, all the invoices are kept going back over 6 years, vat is always spot on. I feel it may be just a little cash they have taken over the years, however as pointed out this can be a can of worms once opened up. Is it usual for HMRC to ask for personal bank accounts at an initial inspection?
Many thanks for that, the client does show directors income for that year and Dividends, the shortfall is about £17,000.
Are the clients best stating the extra money taken from the outset or to leave it until HMRC have been through the paper work and question them?
Many thanks for your lightening response.