Intensification in tax inspection

Comments: 0 1 Post Date: 18th November 2017

There had been some changes in regulations concerning tax inspection. Businessmen will not be happy about intensification. It is worth to know changes to avoid unnecessary unpleasantness.

HMRC office workers have to inform businessman at least seven days before planned date. Information can be passed in writing or orally. It is worth to pay attention that decision about inspection is obligating and we cannot cancel it.

Businessman is obliged to make company’s rooms, material objects and documentation available for inspection. HMRC inspectors have every right to copy company’s documentation or, if applicable, take it over.


Significant changes

It is worth to pay attention on one significant change in regulations – office workers can check private settlement accounts statements or credit cards. This situation takes place when there is a suspicion that private documents are associated with company’s documents.

Tax inspectors can also do ”conformity checking”, when during one inspection there is checking of documents associated with different tax matters (VAT, income tax, CIS, etc.).

Companies typed for inspection

HMRC ”conformity checking” is being done in many cases. Inspectors make routine inspections. More prone for inspections are companies which net income does not overrun £ 30,000 and businesses which turnovers do not qualify for VAT registration duty. Date analysis in order to type company for inspection HMRC inspectors make taking into consideration rounded cash amounts or noticeable changes in given gross income. Moreover, more liable for inspections are all enterprises which did not inform the revenue about the change of their business activity.