Don’t trigger an HMRC audit!
There are a few things to be aware of when it comes to triggering an audit – of course, the simplest way is to follow the age-old rule “Honesty is the best policy”!
Bear that in mind, along with these pointers, and you may be able to avoid the dreaded audit…
Make a note of any large changes in income or expenditure
Questions and eyebrows will be raised if your expenditure increases or your profit drops – because this will affect the amount of tax you pay.
Explain any changes in your tax return – and remember, there are acceptable reasons, including illness or the purchase of an expensive piece of equipment.
Expense claims – inaccurate or unjustified
Make sure you keep receipts of anything you’ve purchased, so you can prove that you incurred the costs for the business…if you can’t prove this, they’ll step in!
Declare everything
HMRC wants to know EVERYTHING – all of your income and of course, where it’s come from too. If there are any gaps, they’ll not fill them in for you – they’ll investigate the whys and the wherefores.
Don’t be late
If there becomes a pattern of lateness, the HMRC inspectors will begin to question what may be going on behind the scenes.
Keep to all deadlines – to ensure all their questions are answered – but also for your sanity! (There’s nothing worse than the stress of feeling disorganised, is there?!)
So, here you have it – some key pointers to help your assessment go smoothly and to avoid being audited!
Of course, we’re also here to support you too along the way…any questions, just ask!
Buckler Spencer – Where Everybody Counts