Tax & VAT Advice

Tax & VAT Advice : Vat Information

Evidence Evidence Evidence

The need for reasonable evidence is paramount.

In the case of Kinsey v R & Commrs HMRC successfully argued that claims for expenditure by the tax payer should not be allowed. HMRC had disallowed part of the expenditure claimed by the taxpayer, because no reasonable evidence had been supplied to support the claim. With no other evidence, the tribunal was satisfied that the HMRC officers’ proposal for settlement was based on her best judgement and was fair and reasonable. In order words HMRC’s guess was better than the tax payers.

In order for your expenses to be allowed it is vital that you have reasonable evidence. Call us to find out if you have enough. 

Pre Inspection Visit

Have you got a VAT or PAYE visit in the next few days?

Tax Champion will come to your premises and conduct an inspection visit so that you know what your commercial risks are. We will identify any problem areas in your records. This will enable you to get any additional evidence that you need so that you are properly prepared for your HMRC visit. You will have a written report so that you can make the changes necessary to make your visit as painless as possible.

As a practicing firm of Chartered Accountants you will be pleasantly surprised what else comes from our visit as we discuss your business and what you are trying to achieve over a coffee.

IR 35 Worries?

Whether you are a contractor or someone using contractors, IR35 has the capacity to destroy your business. As a Professional Contractors Group accredited advisor we can guarantee to defend the advice we give.

Many people are caught by IR35, not realising the consequences.

The danger signals are;

So if you engage contractors in this way or you are engaged in this way, please ensure that your contract is reviewed. We will review the contract for a fixed fee and for an additional fee guarantee to defend the advice.

Tax Return mistakes

Joe was a taxi driver. His financial records were fairly straightforward: he received fares from his customers, and paid for his car, his radio, fuel, and the running expenses. For many years, he had used an accountant to prepare some accounts and fill in his tax return, but decided to complete his own 2004 tax return. It appeared to be quite a simple process, and would save paying the accountant's fees. When he received a letter from HM Revenue and Customs confirming they had received his tax return and that there would be no adjustments, his decision looked to have paid off.

About a year later, Joe called Tax Champion. He had received a letter from the Revenue that said they wanted to open an enquiry into his tax return. The letter asked questions about capital allowances and private proportions. He faxed us a copy of the letter and we rang him to discuss it. It was clear to us that he had made some basic errors on the return.

Joe had not tried to pay less tax than he should; all the income and expenses were properly recorded on his return. The mistakes he made were due to not understanding that the payments he made for his car included interest, and that this was all he could claim; the cost of the car is written off over a number of years and needs to be claimed in a special way; lastly, the car was used from time to time for private journeys, so an adjustment had to be made for that. After a few letters and calls, the problem was resolved and, although he had more tax to pay, he was pleased that the worry was taken away.

Tax & VAT

Tax & VAT Enquiries/Checks

What to do when

What to do when
HMRC visits

How to deal with HMRC enquiry

How to deal with
HMRC enquiry

Tax & VAT Advice

Tax & VAT Advice

Tax Papers

Tax Papers

Penalty Advice

Penalty Advice

Fee Protection

Fee Protection

Recent Tax Testimonial

John had a problem with his VAT registration which HMRC were trying to cancel. He owned a recycling business which had turnover of £200,000.00 every month. John had charged VAT on his sales, and wanted to claim back the VAT...

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Recent Tax Testimonial

Siobhan* was a driving instructor who had turnover of £25,000.00 per year and did her own tax return. HMRC thought that she should be achieving more than she had shown on her tax return and opened up an enquiry into...

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