[redstarwindowcleaners]

Got a letter last week from hmrc sent to me and my accountant
apparently I've once again be plucked from the hat and they are carrying out a check on my accounts from last year
Even thou I pay 20 % on a monthly basis so i dont get a big bill
After deducting expenses etc  i always get a tax refund
The devious basards reckon i owe them £600 quid
I'm sure I'm getting fisted by them
waiting to see what the accountant comes up with

you try to do things right and still get fisted
Think i get myself a mondeo  a nice shellsuit and sign on  And have a claim up
And pocket everything I earn on the quite

what's the point in trying to be honest

[deeege]

Got a letter last week from hmrc sent to me and my accountant
apparently I've once again be plucked from the hat and they are carrying out a check on my accounts from last year
Even thou I pay 20 % on a monthly basis so i dont get a big bill
After deducting expenses etc  i always get a tax refund
The devious basards reckon i owe them £600 quid
I'm sure I'm getting fisted by them
waiting to see what the accountant comes up with

you try to do things right and still get buggered

i think i get myself a mondeo  a nice shellsuit and sign on  And have a claim up
And pocket everything I earn on the quite

what's the point in trying to be honest

Probably a bill similar to the £600 that the HMRC want!

[8weekly]

It is my understanding that an investigation is never random.

[redstarwindowcleaners]

Tax is beyond me i dont think I'll ever understand it

they also gave me a number if I want to ring them and give them any info in their investigation against me !

I can't believe these people !

[redstarwindowcleaners]

It is my understanding that an investigation is never random.

im hardly a multi national
Im A one man band

it's probably cost more than 600 quid in their time
that's if I owe them anything
i can't see how i do

[Ste b]

Many the hmrc read your post about selling chinese poles to friends 

[8weekly]

It is my understanding that an investigation is never random.

im hardly a multi national
Im A one man band

it's probably cost more than 600 quid in their time
that's if I owe them anything
i can't see how i do

http://www.hmrc.gov.uk/agents/compliance/enquiries.htm
Generally something will have triggered a check. For example, when figures entered on a return appear to be wrong. Another example is when a very small business suddenly makes a very large claim for VAT, or one with a large turnover declares a very small amount of tax. The only way HMRC can find out whether the return is correct is by carrying out a check.

Perhaps your accountant is making mistakes?

[Dave Willis]

I was going to ask the same - is there anything that could trigger it? New van, drop in income or anything?

[Ian Lancaster]

I believe that if you keep meticulous accounts and don't cheat then you should be ok.

Every penny in recorded and paperwork to support every penny spent on allowable expenses.  The better, neater and more comprehensive your accounts are, the less the HMRC have grounds to accuse you of dishonesty or even innocent mistakes.

If you do that there shouldn't ever be a problem.  In close on 50 years self employment I've never had an investigation, but if I did I know everything is above board and the Revenue wouldn't be able to find anything amiss.

[redstarwindowcleaners]

I was going to ask the same - is there anything that could trigger it? New van, drop in income or anything?

brought a van and new equipment this year but it's not a massive amount of cash Involved
if it's only £600 quid difference between what my accountant has filed and  what they think the figures should be
theres not a great difference

my issue is if I'm paying 20 %
Why do I still owe

[Dave Willis]

Ah right. Not a tax investigation just a discrepancy. Nothing to worry about then. You could phone and ask them. Normally it's because you've earn't more than predicted. Probably just alter your code for next year.

Could be a number of reasons - maybe you had too high a rebate last year.

I remember getting shafted after my first year trading - forgot the double whammy of payment on account - where you pay tax twice in the same year - half of next years predicted tax.

[redstarwindowcleaners]

I'm sure it'll sort it self out
they also make mistakes

[redstarwindowcleaners]

Many the hmrc read your post about selling chinese poles to friends 

Ain't sold any yet
still waiting for them to arrive

think they're coming on a Malaysian airlines flight !

[andyM]

Can I ask why you are paying 20% on a monthly basis?
Is that a voluntary thing?
The only time I ever paid 20% upfront was when I was under the CIS in another trade.

[redstarwindowcleaners]

Voluntary

pay a % of earnings monthly saves getting a lump sum demand every year
Works ok for me
20 % usually covers plus a little bit
as you said
I also used to be  cis  and just got used to losing that % every month then getting a rebate once a year usually paid Xmas with it

[andyM]

Yes I can see your logic in the way you are making voluntary payments.
Considering that you are also using an accountant im surprised they are calling you out.
As you say it could be an error on their behalf, hope you get it sorted.     

[SeanK]

Tax isn't that hard you pay 20% on earnings after £10000 from April anything you earn over £31.866 you pay
40%
Expenses are anything that's leaves you with no capital gain like fuel for your van, insurance and so on.
So if these come to £3000 then you don't pay any taxes until you earn £13000.
Then you have expenses that will leave you with a capital gain like a van and equipment for these you can claim
a certain amount.
There's no need for an accountant unless your earning big money or crap at maths.

[8weekly]

Tax isn't that hard you pay 20% on earnings after £10000 from April anything you earn over £31.866 you pay
40%
Expenses are anything that's leaves you with no capital gain like fuel for your van, insurance and so on.
So if these come to £3000 then you don't pay any taxes until you earn £13000.
Then you have expenses that will leave you with a capital gain like a van and equipment for these you can claim
a certain amount.
There's no need for an accountant unless your earning big money or crap at maths.

You can claim the full amount for equipment and vans if they are bought wholly for the use of your business.

[redstarwindowcleaners]

Tax isn't that hard you pay 20% on earnings after £10000 from April anything you earn over £31.866 you pay
40%
Expenses are anything that's leaves you with no capital gain like fuel for your van, insurance and so on.
So if these come to £3000 then you don't pay any taxes until you earn £13000.
Then you have expenses that will leave you with a capital gain like a van and equipment for these you can claim
a certain amount.
There's no need for an accountant unless your earning big money or crap at maths.

i tried to do it once myself when was limited in a different industry and was presented with a 15500 tax bill over what I was due to pay cos I filled in the wrong figures
wasted my time trying to save money
in the end went back to the accountant who sorted it for me
for the sake of £300  it worth it to me
i think his fee is a expense anyway so I get a bit back
if a situation arises like this hmrc deal direct with him as he has been nominated by me and they write to me as well

i know what I've gave him is fair and honest so hopefully he'll sort it next week

[CF Facilities]

I can't see how hrmc knows you owe 600 quid when tax year doesn't finish until April 5th for sole traders . Have you upset anyone recently and they have rang up hmrc to drop you in it?