Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: NBwcs on February 20, 2005, 08:43:34 pm
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Ive read on past threads about how the tax office actually charge you about £900 for the privelige of choosing your business for a random investigation, irrespective of finding anything wrong. Ive heard mention of an insurance policy which can cover you against this but cant find anything on the net suitable. Can anyone point me in the right direction and give me an idea of cost?Ive been advised that the chances of being picked on are remote but have subsequenty discovered that I know people who have been looked at (not window cleaners) so maybe its not as remote a chance as i'D like it to be.I personally thinks its ******* disgraceful they can get away with it. £900 to a small business not long established would be a BIG blow. If they found things wern't straight then fair enough but to charge when you've done everything by the book, just sends out the wrong message. Cheers Nick
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I've never heard of them charging you for the priveledge of checking your accounts before :o I think that may be wrong, that must be an old wives tale.
they will almost certainly find errors they can charge you for, if they investigate you, then you will most certainly have a bill of some sort to pay, but it will be a Tax Bill and not a charge for looking at your accounts.
Even if that is what it may feel like :'(
I can't imagine an insurance company having a policy that will cover you for a shortfall in what you owe the tax man, which is really what you are talking about here.
Ian
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Speak to your accountant, mine costs £17 per month.
Justin
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Your Acconutant will sell you insurance to pay his bill to fight your corner.
Dont bother join the federation of small businesses instead lots of benifts apart from this one.
www.fsb.org
Cheers
George
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Yes I pay it as well. I wonder if it is tax deductable? :) :) Theyed love that :) :)
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hi roy
re paying for random tax audit?
yes, tax do carry out random audits as you say, but they choose you, not the other way round.
the cost is not £ 900 the cost is what it costs you to service/defend the audit, it is not unusual in any year to hear of reasonably small businesses having to pay £20,000 to defend an AUDIT.
THE SYSTEM WORKS LIKE THIS, THE TAX SWOOP, THEY HAVE LOOK AND CONCLUDE THAT YOU HAVE NOT PAID/ HAVE DODGED/ HAVE MIS-CALCULATED THE MONEY YOU OWE THEM.
you have two choices
pay up or fight it
you have to prove them wrong
in tax speak you are guilty until proven innocent
this is where defending the audit comes in, if you and your advisers can prove the tax man wrong then you dont have to pay or you will pay less dependent on the outcome, maybe the tax were right and you do owe them money, but which ever way your advisers will sort matters out.
the rub comes at the end, even if the tax are proven to be totally wrong, even if it turns out that they owe you money, you still have to pay your advisers for doing the work and guess what, YOU CANNOT CLAIM YOUR COSTS BACK FROM THE REVENUE. a'int that a bummer.
follow georges advice join the fsb , loads of benfits and tax audit protection is only one, they also give legal advice etc which you could have used to get an answer to this question
cheers
for anyone that cares to know
fsb is £100 a year and £30 one off, beats £17 a month just to insure against an audit
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Hi the insurance I pay is for covering the expence of having to defend your self. :) :) in such a case.
But as you say they choose you .
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hi roy
just a quick grovel, i meant to reply to the initial question from bungalow, was not having a chip.
sorry
must try harder
regards
carl
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Im thick skined no problem :) :)