Information shows Tax Inquiries last tax year exceeded 237,000.
In the scheme of things when looking at the population of UK is small beer.
However for those who receive the brown envelope asking what appears to be easily answered questions - beware.
Quite often the questions raised refer to what is often costly mistakes.
Others lead into deeper probes.
When you consider inquiries for 11/12 tax year were 119,000 see how the numbers have grown.
Second property owners may be targeted due to incorrect or indeed no declarations at all.
Wrongful claims by the self employed trigger questions. Indeed the self employed taxpayers questioned quadrupled last year.
What type of taxpayers are subject to the microscopic check?
Trades, variable yearly results, seasonal inquiries, disgruntled neighbours, or other informants spark the tax mans attention.
For the employed lack of declaration of rental income, undeclared benefits in kind or similar can catch the ever watchful eye of tax investigators.
Second income such as e bay trading, car boot sales and others can, if proof is found, be assessed as traders. Tax being payable on profits.
Many employed taxpayers do not receive notices to render a tax return.
If you know you should make one then request one. Failure to tell will be extremely costly plus interest on non- disclosure.
Contact us for more information.
Member since: 19th October 2010
Accountant at Brian Foster & Co.
Tel no: 01922 457 201