What do you say to the Inland Revenue when they ask to see your Tax Details?

Question

I haven't got any.

Answer 1

If you are self employed most certainly you will have to complete self-assessment tax returns, these returns will usually be enough. However, the Revenue may ask you to provide details of how you obtained the figures and proof that the figures are correct.

If you do not complete tax returns you will get fixed penalties which will stand even if the tax due is nil.

Eventually the Revenue will raise determinations (estimates) of what they think the amount of tax is due which are legally due and enforceable, thus you could have a visit from a distraint officer (baliff), or be summoned either to the Magistrates Court or County Court to explain to a Magistrate/Judge why you have not kept your tax affairs up to date, you have 30 days to appeal a determination. The only way to overwrite a determination is to submit the tax return for the year/s in question.

The other thing the Revenue can due is apply to the Commissioners of The Revenue for daily penalties and if awarded these can be as much as £60.00 per day that the return is late per return, so if you have two returns to do the penalty could be as much as £120.00 per DAY.

If you are in PAYE employment and you have received a self assessment tax return to do then you MUST complete it there are sections in the return for PAYE employment and you will need P60 figures from each employer you had during the tax year in question. The above penalties can be applied if you do not complete the return. It is a self assessment tax return NOT a self employed tax return.

In any event talk to the Revenue do not ignore the problem. Be as open and honest as possible do not try to hide anything and through discussion usually an agreement can be made.

Answer 2

It is entirely up to you whether or not you co-operate with HMRC. Have you made a tax return? If you have not sent in a tax return, an Inspector can make a reasonable estimate of the amount of tax they believe you owe - this is called a 'determination.' They can also charge you penalties and interest on the tax that is 'determined' against you. The only way this can be displaced is by making a self assessment of the tax you owe. If they don't believe this to be correct they will then open an enquiry and replace your figures with the amount they believe to be correct based on the information they hold and any information you provide by way of co-operation.

The best thing to do is be open and honest - if you have failed to declare your earnings or you have made any mistakes (innocently or otherwise), co-operation counts for a lot.

Seek professional advice if you can afford it, otherwise get in touch with http://www.taxaid.org.uk/ - they can point you in the right direction.

Answer 3

Ask them to be speicific, taht is after you explain your employment situation.

If you are employed you should have payslips and a P60 for the end of each tax year.

If you are self employed you should have copies of invoices and your bank details.

Best to ask them what they require.

Answer 4

I don't think you have a choice here,they are wanting to know how much you are earning per annum and if you don't tell them they could estimate how much you have earned and that could leave you in deep do do just show them some bills incoming and outgoing ,,,,,,,hope this helps

Answer 5

I presume you are self employed. You know you have to keep receipts for all outgoings and all in comings for your cash book, sales book and purchase book and if you dont have them you are in deep trouble. you should have an accountant to do all your tax details if you are unable to do them yourself.

Answer 6

if you are unemployed the job centre will have the details you need, if you have been working and not paying tax or insurance then your in trouble, and so is your employer.

Answer 7

Tell them to mind their own business

Answer 8

say you havent got any because everyone pays you in cash !

Answer 9

I no speaka de englisss!

Answer 10

"Yes, Sir. Of Course, Sir. Please don't send me to jail, Sir"