Tax Documents
Professionally drafted, regularly updated documents each with its own "how to use" introduction

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Dealing with tax investigations (21)

Letter turning down an interview
There is no statutory obligation to attend an interview with HMRC. If HMRC requests a meeting, but you're satisfied that there's no advantage to having one at this stage of the enquiry, you can write, declining a meeting and explaining why. Probing questionsOnce they have been through your records, the... Read more
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Type: Letter
Request for closure of enquiry letter
If you believe you've given HMRC all the information it has requested, you can ask it to close the enquiry. Your first step is to write a letter asking for the enquiry to be closed or for details of the further information it requires.Stalled enquiryIf the inspector running the enquiry has already dragged... Read more
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Type: Letter
Enquiry - capital statement checklist
During an enquiry HMRC may require a so-called capital statement to be prepared. Preparing an accurate statement is important to settling the enquiry. Use our checklist to help you produce your capital statement.what is a capital statement?If there is difficulty in obtaining business records for earlier... Read more
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Type: Checklist
Amending a personal tax return letter
You are entitled to amend entries on your personal self-assessment tax return within the "amendment window". Where you completed and submitted your return electronically either using HMRC's or commercial software, you can use it to make amendments. However, where you submitted a return in paper format... Read more
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Type: Letter
Self-employed pages review
Before filing a tax return it's a good idea to carry out last minute health checks with a view to reducing the chance of it being selected for an enquiry. This is especially important if you are self-employed. Check your answersBefore submitting any return you should compare all your answers with a copy... Read more
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Type: Checklist
PAYE - letter of disclosure
If HMRC has told you that one of its officers will be visiting you to carry out a PAYE compliance review, it's advisable to make your own check that your records are in good order. You should notify HMRC ahead of the visit of any errors which have resulted in unpaid tax or NI contributions.write to... Read more
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Type: Letter
PAYE compliance review date not convenient letter
PAYE compliance review - date not convenient letter HMRC carries out thousands of on-site PAYE compliance reviews at the employers' premises every year. The date proposed might not be convenient for you or your payroll staff and you are allowed to ask HMRC to arrange the visit on a date suitable for... Read more
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Type: Letter
Complaint letter
Ultimately, the Adjudicator's Office handles all complaints about HMRC. However, the adjudicator will only examine a complaint if it has been through the proper levels of authority within HMRC first. It's the same letter but to different people. So what should you put in this particular piece of correspondence?Set... Read more
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Type: Letter
Appeal and postponement of direct tax
This standard letter can be used to make an appeal against any direct tax assessment, e.g. income tax, corporation tax, capital gains tax etc., but not VAT, customs or other duties.How to use itThe time limit for submitting an appeal is 30 days from the date on the assessment or determination issued... Read more
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Type: Letter
Letter to get a tax penalty reduced or suspended
HMRC has the power to reduce a maximum tax penalty to take account of the nature and quality of any disclosure you have made about an "inaccuracy". How do you get this on the inspector's negotiating agenda?What will trigger a penalty?A tax penalty can now be triggered in two possible ways. Firstly, a... Read more
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Type: Letter
Key events chart
If you are subject to a personal tax enquiry, deposits on your bank account statements could be taken to be a second source of income by HMRC. Therefore, it's a good idea to keep an up-to-date record of these rather than relying on your memory, or an expensive exercise by your advisor later.Unidentified... Read more
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Type: Form
Changing interview notes
If you attend an enquiry interview, the tax inspector will make their own notes of what they "think" was said and use them against you if they can. They will probably try to get you to sign them as a true record of what came up at the meeting. Should you?Read the notesNever sign notes at a meeting. Gain... Read more
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Type: Letter
Enquiry - private expenditure record
During a full enquiry into your tax return, if you are self-employed you can expect the inspector to start asking questions about your private expenditure. The presumption is that any "missing" takings from the business will show up as personal expenditure. Providing an accurate summary of your outgoings... Read more
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Type: Checklist
Checklist for challenging an HMRC business economics exercise
In the pursuit of tax collection targets there is now a much greater willingness by HMRC to displace the profits shown by your accounts with an estimate based on a simple business economics exercise. Our checklist can help you identify flaws in HMRC's calculations. Missing incomeA typical example of... Read more
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Type: Checklist
Product mix reconstruction
When carrying out a business economics exercise, the tax inspector will often use an industry average mark-up of purchases to selling price to construct a sales figure. But this simple calculation doesn't take into account your business's product mix. Use this template to demonstrate that the inspector's... Read more
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Type: Document
Enquiry - notice out of time letter
To start an enquiry into your personal tax HMRC must notify you of its intention within a deadline. Before you reply to any questions HMRC raises, check that the enquiry notice has been issued in time. If not you should respond immediately advising HMRC that it is out of time. Delivered too lateThe... Read more
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Type: Letter
Accounts - obligation for past event note
One tax game that's played every year end involves getting tax relief before you've spent any money. Quite often you don't get the actual invoice in before the year-end. So instead you can include in your accounts a reasonable provision for the estimated costs of what you will eventually pay. However,... Read more
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Type: Document
Enquiry - challenging a business economics exercise
There can be many reasons for challenging an HMRC business economics exercise, but you must have good grounds for doing so. Are your records deficient?HMRC's business economics exercise approach to increase taxable profits cannot be justified unless the records have been shown to be deficient in some... Read more
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Type: Letter
What HMRC is likely to ask
There's a pretty standard set of questions that the inspector will ask at interview. These are mostly designed to undermine the records you've kept and so allow them to make a demand for tax on missing income/profits or over-claimed expenses. So how should you prepare for such an interview? GuidelinesIf... Read more
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Type: Document
Wastage losses record
Wastage/losses recordHMRC typically uses a mark-up of purchases to selling price to construct an anticipated sales figure. However, this doesn't generally allow for wastage/write-offs. So what simple records could you keep about "wastage"?Wasted stockProduct losses can take many forms: discounts and... Read more
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Type: Form
Enquiry - business economics exercise letter
You might feel that the tax demand based on a business economics exercise routine is absolutely outrageous. What measured response should you give?Don't say too muchDuring an enquiry into a tax return there is now a much greater willingness by HMRC to displace the profits shown by your accounts with... Read more
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Type: Letter