Revenue interventions threaten directors

This summer 14,000 directors received letters from HM Revenue & Customs (HMRC) suggesting that they might have made mistakes in their tax returns. This was a pilot scheme and now there is concern that these ‘interventions letters’, which bypass taxpayers’ professional advisers, will become much more widespread.

If you receive one of these letters, do not reply but pass it on to us immediately. If HMRC telephones you, just take details and then seek your accountant’s advice. We are here to look after your tax affairs. Also, you should not worry that such a letter means you necessarily owe more tax. Despite their threatening tone, the letters, which come in several standard versions, do not necessarily mean that the Revenue has any information that your tax return is incorrect in any way. If HMRC did have such details, it would have opened a formal enquiry.

One of the letters suggests that directors commonly include personal items in their claims for business expenses. Another accuses the recipient of not declaring taxable bank or building society interest. Although the letter says ‘participation in this trial is voluntary’, it goes on to ask the recipient to contact HMRC within 30 days and threatens to make an assessment ‘to collect the amount that we believe is due’.

When we prepare your tax return, we take steps to exclude all personal items from your business expenses claims and to make sure all your income is shown. Of course we can only do this if you keep all relevant paperwork and tell us everything. If you think you might have forgotten something, please let us know right away so that we can sort it out for you and give you peace of mind.