HMRC Business Check

[farmer_ben]

Had a business record check today, went well. The lady was very pleased and satisfied all records etc were kept correctly. I had nothing to hide, but was pretty nervous seeing that now firewood orders are roaring out of the door im handling a fair bit of cash sales.

 

We discussed the 3 elements of my business (farming, contracting and firewood) equally. I thought she would concentrate on the firewood due to the nature of alot more sales then say grain sales etc.

 

It did surprise me though the lack of knowledge she had on firewood and how its sold. I sell per volume and always issue VAT receipt etc, she just presumed it would be per truck or ton load and always cash sales!! She left very happy about being educated about farming and firewood.

 

I got a lot out of the meeting, apparently a lot more small businesses will be having them over the next 12 months. Keep records guys, ESPECIALLY the cash sales!

[porky]

Something to look forward to then.

[ThrustSSC]

I'll look forward to my visit, then. First question from me will be: "When are you going to pay me the money you owe me?"

 

I know we need HMRC for the country to function, but I do wish they were competent. I can only presume the pay there is dreadful...

[Johny Walker]

I'll look forward to my visit, then. First question from me will be: "When are you going to pay me the money you owe me?"

 

I know we need HMRC for the country to function, but I do wish they were competent. I can only presume the pay there is dreadful...

 

that should make a good imperession,not!!! follewd by a lenthy & costly to you tax records check for the past 5yrs of trading

[Alycidon]

Some years ago we were advised of a HMRC check. I got everything arranged, all books and paperwork for last 7 years, company secretary on site for the day etc. 4pm the day before he cancels. Why?, from his office he has to take public transport to get to me, that involves 3 bus journeys, leaving at 7am on the first bus from his town the earliest he can get to me was midday, he would then have to leave at 1pm to get back by 6pm.

 

Seems they are not allowed to use cars, either pool or private. he promised to come back another time but never did. Mind you there was absolutely nothing for him to find anyway, fiddling tax is a mugs game.

 

in 22 years in business plus 4 in my new business post retirement I have had one VAT audit, thats it. But I do use a very good ( and expensive) accountant who makes sure all is in order and the boxes are ticked etc.

 

A

 

I cant see that situation getting any easier for HMRC despite the threats.

[Pilgrimmick]

What cash sales????

[ThrustSSC]

that should make a good imperession,not!!! follewd by a lenthy & costly to you tax records check for the past 5yrs of trading

 

I've nothing to hide. So will enjoy the conversation

[farmer rod]

I've nothing to hide. So will enjoy the conversation

 

try this one...

 

irritated tax official " Dont you keep any records"

 

innocent business person "Yes, I keep Elvis and the wife keeps Barry Manilowe"

[renewablejohn]

Farmer Ben

 

Make copious notes of what you discussed when, where, who with, what advice given etc etc. This is for your own protection at a later date. Sounds like a typical HMRC tactic of playing dumb when it comes to your business this then puts you in a position of having to explain in greater depth the scope of your operation and will be used against you at a later date in terms of "on x date at a meeting with HMRC inspector Y you stated ....". We started off in similar manner 5 years ago on the basis of "nothing to hide" and that is still the case but we are now at the stage of a tax tribunal hearing with barristers involved having to prove we are entitled to the tax breaks all farmers are entitled to. Remember the rules of innocent until proven guilty do not apply with HMRC. Similarly its not upto HMRC to prove your guilty its up to you to prove your innocent at your own expense.

[Andy Collins]

Ditto that! Been there and had the displeasure. All very amiable on first meeting, nice as pie, get you to chat a little about things and open up, after all they're there to help you after all It's not a case of having something to hide, it's a case of they do not believe that you could actually be honest. Then the second meeting, they run through all the official stuff that was discussed, and then go over the little details that they thought they gleaned from you. I believe they have a theory that everyone is cheating the system, in some way, even a perfectly innocent way. Eg, you don't accept any cash payments for firewood? At all? Ever? Then prove it! How do you prove that you don't have something? Did you have a nice holiday this year? How much was that? Oh I guess times are a little tight with a baby aren't they? Price of nappies and stuff. Yet you can afford a holiday, for two adults and 2kids, for 2weeks in Egypt? Must be pocketing a little cash for that, spending money etc everyone does it. see where I'm coming from? Best thing I ever did was took on a Chartered Accountant, someone who knows how to play their games.