Thanks Tim. The client is in retail, but 2 of the questions refer to a previous self employment as a taxi driver. The majority of the questions seem, on the face of it at least, pretty straight forward asking for a break down of expenses, how he assessed opening and closing stock and how the turnover figure was arrived at. One of the questions they, asked though was how much he took in drawings and on which dates, this wasn't information he could provide and I made a calculation based on the bank and cash balance at the year end.
Kris
-- Edited by kjmcculloch83 on Thursday 2nd of May 2013 11:54:48 PM
I got a letter today from HMRC regarding one of my clients. It seems they are doing a check under S9A of the Taxes Management Act 1970 into his 2011-12 tax return.
They have asked me to call for a chat, as well as asking for answers to some 11 questions and all of his prime records and bank statements. I'm not sure why they have decided to do this check, and I'm not unduly worried but I did wonder if anyone had been through one of these and what I should be expecting?
Yes - give 11 answers to 11 questions.... if you want chat you can go to the Red Lion. It might be completely random. What sector is it?
You will do some checking procedures without thinking. You would for instance: identify and ask for any missing bank statements, cheque stubs, paying in slips, illegible entries, missing invoices, and intelligent query's p EG. ..... £100 + VAT 15% = £117.50.
Therefore state the very obvious as well as any other credit check lengths you might have done. Treat this is the thorough investigation it appears to be. TIm
Clients often record drawings incorrectly as they subsequently spend some of the drawings on business related items. However, they rarely show the monies as being reintroduced and it looks like they've spent money twice. The Revenue love this as they can say that it proves there were more takings.
Depending on the records, you might be able to glean what was taken in many of the weeks and if there are instances of cash withdrawn from the bank then you may be able to state that in those instances, the drawings have been recorded.
