News : Valerie Moore
The Taxman on Your Doorstep?
02 April 2008
Anyone working from home (or from business premises) – small businesses, landlords, on-line traders – may well find the Taxman on their doorstep from April 2009. Under the current regulations tax inspectors need to provide evidence of criminal activity and seek permission from a judge for such unannounced visits – but that is proposed to change from April 2009.
The Inland Revenue and Custom & Excise were merged in 2005 with C&E having more ranging powers than the IR and this appears to be an alignment of those powers – ie giving more rather than taking some away.
The new powers give the Revenue the right to demand instant access to your records and if you work from home – then home is where they will have the right of instant access.
Although it seems that they can be refused entry, the government is proposing to introduce hard-hitting penalties for blocking an inspection.
There also seems to be a change in payment of penalties – upwards of course.
There was an interesting article covering this in the Sunday Times on 16 March – page 7.
Advice.
Keep in touch with your accountant; read the quality press for information; consider joining business lobbying groups like the Federation of Small Business or the Forum of Private Business and await the details of any legislation to know what will happen.
The Inland Revenue and Custom & Excise were merged in 2005 with C&E having more ranging powers than the IR and this appears to be an alignment of those powers – ie giving more rather than taking some away.
The new powers give the Revenue the right to demand instant access to your records and if you work from home – then home is where they will have the right of instant access.
Although it seems that they can be refused entry, the government is proposing to introduce hard-hitting penalties for blocking an inspection.
There also seems to be a change in payment of penalties – upwards of course.
There was an interesting article covering this in the Sunday Times on 16 March – page 7.
Advice.
Keep in touch with your accountant; read the quality press for information; consider joining business lobbying groups like the Federation of Small Business or the Forum of Private Business and await the details of any legislation to know what will happen.