Are you meeting with a Tax Inspector for Investigations? Contact Huston & Co, they will advise you for dealing with HMRC Enquiry. Call on 028 9080 6080 for Free Consultation.

1. Tax Investigations - Meeting the Inspector
What should you expect during a meeting with a Tax Inspector reviewing your Self-Assessment Return?
HMRC uses such meetings as an opportunity to find out how you run your business. They may even be
looking at a range of taxes on the same day – eg VAT Returns and business tax returns declaring profits.
The Inspector(s) will ask about the day-to-day operations; who handles the cash; how many staff you have
and how and when they are paid; what contemporaneous records are kept. (Contemporaneous means
'created at the time' in HMRC speak).
The Inspector is trying to establish if there are opportunities for money to go astray i.e. not through the till
or books. This is more likely in a cash trade such as a pub or newsagents than a business issuing invoices
and being paid by cheque or BACS.
As well as the business the Inspector may well ask about your personal life. He will try and obtain a picture
of your lifestyle and the amount of money such a lifestyle needs. Strangely most Inspectors find they only
interview taxpayers who neither drink nor smoke, rarely go out (and never to the pub), never take foreign
holidays and generally live a miserable, frugal life. Odd that?
It doesn't need to be this way. Everyone is entitled to a life, holidays and the occasional party. An Inspector
will believe you if you admit to going out, buying presents and holidaying abroad. He will then also be more
willing to believe the other things you have told him. Your problems only start if you are trying to convince
him all this is done for a family of 6 on £100 per week.
It is important to remember that an HMRC enquiry into a particular Self-Assessment Return relates to the
year the Return shows the figures for. It is not an opportunity for a fishing trip into earlier years. An
Inspector can only embark on such a trip if he has found a hole (mistake) in the year under enquiry.

2. It is a fine balancing act between being co-operative over questions outside the limited legal scope that
HMRC truly has and allowing them to walk all over you.
At the meeting the Inspector, or his friend (if he has brought one), will take detailed notes of the questions
asked and your replies. You are entitled to a copy of these notes (which are typed up after the meeting) and
no Inspector should refuse such a reasonable request. He is not entitled to a copy of any notes you or your
accountant may make. I would advise that your side does keep a record at the time so that you can compare
your recollection of events with that of HMRC. It could prove important.
Huston’s Hint
Get a copy of the notes of the meeting from the Inspector. They are always prepared so if you see them you can
check what is going down on paper – and correct it if inaccurate.
Huston and Co
Address: 481 Upper Newtownards Road
City: Belfast
State: Northern Ireland
Zip: BT4 3LL
Country: UK
Phone(s): +44 (0) 28 9080 6080
Fax: +44 (0) 28 9047 1630
Email: Adrian@huston.co.uk
Website: http://www.huston.co.uk
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