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HMRC Inspection Powers and Powers to Request Information

Having due regard to the previous article, and the comfort of knowing Blondie’s accountants in Manchester can be there for you in the event of the HMRC radar and spotlight falling upon you, rest assured, the last thing you need to be is a rabbit caught in headlights.

Forewarned is forearmed, so may we as your local Manchester accountant outline the basic powers of HMRC have with regard to your business and personal affairs.

This is far from an exhaustive list, and if you require more in depth information, or have a concern that you may be on the HMRC radar for any specific reason, then please do not hesitate to speak to us at Blondies Manchester accountants.

The very worst is that you end up with a Fixed Fee quote and the assurance and comfort that you can leave the HMRC to us at your friendly and protective local accountants in Manchester.

The core powers of HMRC which at some time may concern you are contained in Schedule 36 of Finance act 2008.

These powers cover the core issues of PAYE;Income Tax, Corporation tax, Vat and Capital Gains Tax.

The act stipulates the powers of HMRC to visit your business premises and inspect the premises themselves, assets, stock, records and further to be able to approach third parties, such as suppliers and customers to request relevant information.

Whilst not wishing to alarm you, the 2008 act did give HMRC more powers , it made things much easier for HMRC and a lot less comfortable for the Tax payer.

The new format is prima facie softly – softly, with the opportunity to Voluntarily provide information and documents before any official “Information Notice” is issued under the act.

It can be very sensible at this voluntary point, to alert a specialist professional such as ourselves at Blondies accountants in Manchester.

We are able to analyse and digest “where HMRC are coming from” with our inside knowledge of their procedures. The key point at this “voluntary” stage is to not provide too much But also not too little.

It is crucial to pre empt as professionally as possible what the HMRC “terms of reference” are, and this pre-emptive voluntary disclosure, if handled correctly, can often be the end of the matter.

Phew!! Thank goodness we asked our local accountants in Manchester for advise at an early stage.

From experience, we at Blondie’s Manchester accountants have advised in several score similar HMRC first contact cases, and in over 70% of these have ended at the voluntary point, because we advised the client EXACTLY what to disclose at the Voluntary point.

Failing this, the matter can get messy.

We then move into areas to which you would rather not have went. For example, if you do not get exactly right your voluntary disclosures, the HMRC requests for documents from third parties can then extrapolate and matters begin to mushroom.

All is not lost, Blondie’s Manchester accountants are fully au fait with how far these HMRC third party rights can go.

Documents requests from third parties must fall within specified terms of reasonableness and clearly defined as necessary to check the taxpayer’s position.

If HMRC know you are been professionally advised, and that any unreasonable requests could be overturned at a tribunal, they will tread more carefully.

As with our specified case in the previous article, there is a statutory system of copies need to be issued to certain parties, and in the correct format, This includes a notice to you seeking formal agreement with their request to the third party for information about your tax affairs or otherwise be approved by a First Tier tribunal) there is myriad of other extrapolations from this rather simply explained scenario, too elongated to list here, but all within the knowledge and experience of your local Manchester accountants, Blondie’s.

So just from this small step between Voluntary Disclosure to HMRC requesting information from third parties, you can see what we mean by things can quickly start to get “messy”

Far better from the start to have professional input from your local Manchester accountant.

Then again, if we were your Manchester accountant already, we very much doubt that you would ever even experience An HMRC “Voluntary Disclosure” request, let alone the very “messy” myriad of government rules and procedures often Prima facie in favour of their agents the HMRC.

After all, you have a Business to run and money to make. We at Blondie’s Accountants in Manchester can make sure that you focus on making as much money as possible and paying (legally) as little tax as possible, and not spending your time engulfed in putting out fires bacuse you attracted the HMRC radar.

Click on our “Quotation” link near the top of our home page –it will be the best time,hassle and money saving thing you ever did.


Partner up with a local, trustworthy and better still, Fixed fee Value Priced Accountant in Manchester, Blondie’s.

 

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