We can all expect at some time or other, that HMRC will decide that an in-depth tax enquiry into our affairs is warranted.
Sadly, for every taxpayer that is justly subjected to such a process, there is, experience teaches, at least one other where that does not apply.
Based in Portsmouth in Hampshire, L was one such casualty. Due to some innocent mistakes made on a Tax Return, HMRC launched a full-scale enquiry into his affairs. The process was drawn out, and involved assembling and providing large volumes of material to the tax office. L is a dutiful and selfless family-man: many of the enquiries made by HMRC were intrusive and personal, relating to transactions that were family matters, with nothing to do with the business.
The client became despondent, at HMRC’s brutal dismissiveness of explanations, and demands for ever more information and evidence. The enquiry took its toll on the business and on L personally.
At last, as the evidence became undeniable, HMRC were obliged to close the enquiry, with largely nominal adjustments only to L’s tax position.
After a tough year, L’s Christmas card to Nicholas Ridge CTA read “A BIG thank you for all the help you have given us in the last year or so. It is much appreciated”.