Newsletters
Autumn News
An Inspector Calls
Since 1 April 2009, HMRC have had new powers to check up on taxpayers' returns. For the first time the law envisages tax inspectors calling to look at the income or corporation tax records, possibly unannounced. VAT-registered traders are familiar with the idea, but it's new for taxes on income and profits.It's unlikely that many people will be visited, and an unannounced visit will only be made when HMRC have reason to believe something is seriously wrong. Even so, it's important to be aware of the new rules and to think what you will do if you are picked on.
The first thing is to take any visit seriously, even if they say it's routine. You are entitled to have your tax adviser present, and you can even delay the start of an unannounced visit for a short time while summoning help. It's important to appreciate that the first, unconsidered answer to a question - given innocently to be helpful or to get rid of the visitor - may create all sorts of problems later if the information was wrong or suggested that something had not been accounted for correctly.
Businesses have disaster plans that they draw up, communicate to staff and hope never to use. A plan for dealing with a visit from HMRC may be a good idea for the same reasons. If you want help drawing one up, or during an inspection, we are here to advise you.
