hmrc compliance check

[suesupaul]

Hello and thankyou for letting me join.
I am in the throes of a compliance check from HMRC which has been going on now for over a year.
I'm a sole trader and have two part time employees.
I don't have an accountant and have always done my own books.
I'm not too concerned as I am pretty much on the ball when it comes to my accounts etc and I like to do everything by the book.
The thing is I am not confident that the compliance officer knows what he is doing as some of his calculations are wrong and the original ones (mine) are correct.
He didn't know what I could claim on my car payments and didn't know what a Personal contract purchase was.
No disrespect to said officer but I almost feel like I am more knowledgable than he is.
At first it was making me anxious but now it is just getting extremely tedious and I'd like an end to it.
Has anyone on here had the same problem ?
I am minded to maybe complain to his manager but then I think it will go on for even longer.
I'm really not sure what to do.

 

[Ozzy]

Did you say the compliance check has been going on for over a year? We had one a few years back and was only two days.

When you provide the information back confirming you're correct how does the inspector respond? Do you get a vibe they're desperate to find something, or that they appreciate you furnishing them with the information? Depending on what it appears to be may decide whether to file a complaint or let it roll.

 

[IanSuth]

We had one years ago drag on for ages - they were getting to stupid things (ie bouquets of flowers that were sent to staff wife's who gave birth should have been listed as BIK )

MD at the time got so bored she said "Right, what do you think I need to write a check for now to HMRC for you to feel this has all been covered" - it was a silly number under £200

 

[UK Contractor Accountant]

He didn't know what I could claim on my car payments and didn't know what a Personal contract purchase was.

And what have you claimed for tax on the PCP purchase as it differs depending on whether the final ballon payment is set artificially high, low or deemed market value.

This may be the sticking point of the inquiry?

 

[DWS]

HMRC compliance checks look at different things, sometimes it is just a single aspect of the tax return or it maybe the whole return, is it just the car claim they are looking at or the whole return?
Usually when HMRC open a check they will ask you to provide certain pieces of information to prove an expense claim, is this what they did?

 

[Tornado220]

Hello and thankyou for letting me join.
I am in the throes of a compliance check from HMRC which has been going on now for over a year.
I'm a sole trader and have two part time employees.
I don't have an accountant and have always done my own books.
I'm not too concerned as I am pretty much on the ball when it comes to my accounts etc and I like to do everything by the book.
The thing is I am not confident that the compliance officer knows what he is doing as some of his calculations are wrong and the original ones (mine) are correct.
He didn't know what I could claim on my car payments and didn't know what a Personal contract purchase was.
No disrespect to said officer but I almost feel like I am more knowledgable than he is.
At first it was making me anxious but now it is just getting extremely tedious and I'd like an end to it.
Has anyone on here had the same problem ?
I am minded to maybe complain to his manager but then I think it will go on for even longer.
I'm really not sure what to do.

Out of interest what makes you think your calcs are the correct ones ?

 

[MyAccountantOnline]

Hello and thankyou for letting me join.
I am in the throes of a compliance check from HMRC which has been going on now for over a year.
I'm a sole trader and have two part time employees.
I don't have an accountant and have always done my own books.
I'm not too concerned as I am pretty much on the ball when it comes to my accounts etc and I like to do everything by the book.
The thing is I am not confident that the compliance officer knows what he is doing as some of his calculations are wrong and the original ones (mine) are correct.
He didn't know what I could claim on my car payments and didn't know what a Personal contract purchase was.
No disrespect to said officer but I almost feel like I am more knowledgable than he is.
At first it was making me anxious but now it is just getting extremely tedious and I'd like an end to it.
Has anyone on here had the same problem ?
I am minded to maybe complain to his manager but then I think it will go on for even longer.
I'm really not sure what to do.

Exactly what calculations were wrong and why?

Have you sent a letter to the Inspector setting out what you believe to be the errors and if so when did you send it and have you had a reply?

Have you had a meeting with the Inspector?

It's a bit difficult to offer a suggestion not knowing more about the case.