Surviving a Tax Audit from HMRC - what happened next? (part 2)

[@NettiGaming]

I'm going through this now. Its massively stressful. Its bringing back my anxiety. My business failed and my dad had to help me out to pay back money I owed, so my company was at a loss. then I started back employed. I hadn't got an accountant and did it myself. I feel like I'm waaay in over my head.

[@NettiGaming]

3 months on turns out they owed me some tax back :-)

[@musicsounds7949]

@@NettiGaming glad you got out of it cleanly :) can i ask what kinda business it was? (unless its personal) thanks

[@NettiGaming]

Was a self employed mortgage adviser.

[@flyingbirds4235]

The only question I have in my mind after watching this show that does the HMRC ask similar questions to the big organizations like Amazon, Google or they just only scrutinize small businesses?

[@SmallBusinessToolbox]

Lol that's a very good question. 👍

[@TheKayakCrew]

I can’t believe that the Revenue spend so much time and resources investigating small businesses like yours with frivolous questions while the big corporations get away with avoiding paying millions of tax. Perhaps it is the Revenue who should be audited?

[@KevinJohnson-nm4lk]

Just found your channel and watched a couple of your vids. Nice one! I've subscribed and will have a proper browse through in due course. I had a tax review in 2014 for the years 2010/11 & 2011/12. It ended up with me taking HMRC to Tribunal and gaining some considerable success over turning their unjustifiable position. I did try for an Upper Tier Tribunal but my application was dismissed by the judge at a hearing in the Royal Courts of Justice. It was an interesting experience 😂

[@SmallBusinessToolbox]

Wow! Glad you got through it - must have been very stressful. A lot of what they ask for is so subjective anyway it's really down to how they're feeling at the time... and how much budget they have for compliance checks. Onwards and upwards! 👍👊

[@leodspprince2184]

Thank you. Always wondered how they will treat us small business side hustlers

[@mariescott9071]

I have just found your channel. I have watched a couple of you'd video's so far, and I am delighted with the contents. This one is especially helpful. Thanks again, and look forward to seeing many more of your videos.

[@silowan197]

I'm going through this right now. Its been over a year and still rumbling on. Had the 2 letters and then an 2 hour interview with them.

[@phyllisb-chronicles3358]

You did extremely well. Well done

[@sisterwoo]

Hi Andy, out of interest am i able to be self employed and also have a job which is PAYE? Thankyou

[@vicvicky]

The total interest in my savings account in the last year is 8.4£ do I need to declare it in the self assessment form?

[@maddiem5921]

This made my nerves bad! The 'Did the business actually start on X date' question is confusing for me, because for multiple online revenue sources e.g. eBay, KZbin, image licensing websites, do they mean when did you actually create each of the accounts (which would be years ago for me), or when did you earn enough money from all of them combined to need to pay tax (which will be this year for me)?

[@redf7209]

The different sources of income are not set up as separate companies? They are just different aspects of the business as far as HMRC are concerned, like starting to sell socks as well as shoes. Its basically the date/tax year your income is sufficient to start paying tax on or registered as a company. There's probably some legal clarity to figure out here though and for people who have not formally registered as a company the date or tax year they started making money could probably a bit of a fudge.

[@rinainlondon8]

This is what question I have

[@sammy_bw]

Just got a letter through the post today. First year self employed and ran at a £1000 loss for the year. They just seem interested in seeing if my business is real and some cis payments where they held emergency tax. Don’t know if this is the top of the Iceberg and they will end up digging deeper.

[@shotasuladze6140]

hello , can you help me to check my previous tax returns , my accountant had made it and i need to check , i have an access to HMRC but could not find previous tax refunds and whether amended or not.

[@SmallBusinessToolbox]

I can't check your previous tax returns - I think you need to get in touch with HMRC! 👍

[@redf7209]

Aren't you supposed to keep records for a number of years? Does your accountant not share with you?

[@J0ECrow]

So helpful, thanks.

[@howardingham8153]

I’d love a template of that excel spread sheet :-D

[@SmallBusinessToolbox]

Which spreadsheet?

[@howardingham8153]

Small Business Toolbox the one you have to keep records of you’re receipts, I’ve only just recently needed to use excel so I’m still learning all of basics it would save me a lot of time having yours which has all of formulas etc 😁

[@SmallBusinessToolbox]

It's on my Patreon. www.patreon.com/smallbusinesstoolbox 👍

[@TheNeilsolaris]

You should be careful declaring that you use a room at your home 100% business use, if you own your home. Because when you come to sell it, you can be liable to capital gains tax. In terms of the rules, normally you divide your household expenses by the number of liveable rooms (therefore not just the bedrooms, but also the living room for example).

[@redf7209]

It may also impact validity of your house insurance ( if they knew - and they might if there is a related fire/theft), though many companies have suspended this as a factor during covid when so many work from home. There could potentially be a rates or zoning impact( change of use) for some companies too esp if they use premises for storage.

[@ianjresells]

Did they actually visit you, or was it all done through email and post.

[@SmallBusinessToolbox]

All e-mail / phone for me after initial letter. 👍

[@raalaa121]

LOL @ the dig at Amazon ... hear hear ... leave us little businesses alone ! go after the goliaths.

[@Decarmello]

Can you review ANNA Money pls. Thanks

[@SmallBusinessToolbox]

Will see what I can do!

[@massiveaction2371]

They want last 5 years history of you. Or is it 6 years we need to keep?

[@SmallBusinessToolbox]

I *think* officially it's 7 years but I've never heard them go back that far. 👍

[@animationcreations42]

There's nowt more depressing than a happy ending! You were clearly evading paying tax! Should have brought the hammer down on you! Seriously though, it was a very good point you made about only giving them exactly what they asked for. I do that with just about everything, there's no point wasting my time doing things I wasn't asked to do, if they wanted it, they would have asked for it. Either that, or they don't know what they're doing! Plus, if I am going to waste my time, I want to waste even more of theirs first!

[@SmallBusinessToolbox]

Indeed! They have a job to do and sometimes if you volunteer information they haven't asked for they have no option but to investigate it further. I'm terrible for rambling though... even with HMRC... 😂👍