From the last question of the three it sounds as though they are looking to determin whether the declared income supports the lifestyle of the taxpayer and if not where does the money come from.
They can ask pretty much anything about your finances to establish an overall picture of the taxpayers financial affairs.
Other things that they may be looking for is whether workers are being paid cash in hand (The £300 enquiry).
Was a claim made for the VUE BS against the business? It sounds very like VUE cinema's even though it's probably not and the inspector was just checking that out.
Basically you need to try and view what the inspector suspects is happening to see where their enquiries are coming from.
That said, inspectors are only human and if an investigation is opened that is finding nothing they will be trying to find something to justify the cost of the investigation.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Yup, VUE is just cinema - was paid for the tickets :)
£300 cash withdran used for rent/purchase work clothes.
And rent was low and all inclusive.. client could not afford to live on his own. Its just he got 15 questions looks like about not related things and inspector just looking how he can to bite.
Lol my client could not afford any going out for 3+ years.. just once a month to cinema. Ech.. ok thank you once again Shamus :)
P.s. and do not drink so much.. as your avatar does :)
I've always adapted the stance (in my own personal finances) is and money going into a bank account I need to keep details of to justify. Any money going out of a PERSONAL account is none of their concern. I don't care if they are trying to build up a profile of me - if I am not trying to reduce my tax bill by any amount of my PERSONAL account then they can whistle for it.
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Never buy black socks from a normal shop. They shaft you every time.
single parenting / sole responsibility makes me almost T total.
The worst tipple that I partake of currently seems to be too much by way of red bull equivalents (Kick, Blue Charge, etc.).... Which of course is great for knocking out accounts at three in the morning... Sleep is deferred to mid February.
hope you have a happy and prosperous new year, and that HMRC give up trying to find issues where there are non with your client,
all the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hope some of my clients are reading this who won't conduct their trades through a separate business account. It's no guarantee that an enquiry won't become a full blown investigation but keeping the business entirely separate gives HMIT less scope for fishing.
I see you're in London and their will be someone on here who can give your answers the 'once over'.
