I have always found the VAT people to be very professional in their approach.

Were your records in a good state? Had glaring errors been found even during the short visit?

I think that the quote is that an officer of Revenue & Customs has the power to demand the production of documents at the principal place of business and at such time as the authorised person may reasonably require.

Although this seems a very unusual approach there may be good reason for it such as a large number of unusual transactions requiring further investigation.

You may wish to contact your VAT office and enquire as to why copies are required in this form. Certainly whenever I have dealt with cases of this nature they have wanted the original documents not copies. Or to have taken a copy themselves of the original.

However, as the inspector can within reason demand pretty much anything that they require then you may have to comply.

Talk to the VAT office but as I say be prepared not to get the answer that you want.

Please keep us informed as to what happens with this one.

Shaun.

Work has been pretty tough lately, still (but off for Easter) in Brum for a few more weeks and also trying to keep the day job going, as turnover is not good and the company is struggling to say the least!

Have been trying to keep up on here but time just does not allow, but today back in the office so have less pressure!!

P

This is an excerpt from the inspectors own handbook, look at the 'reasonaly required' at the bottom

CH21620 Information & Inspection Powers: Conditions and safeguards: What we can require or inspect: Reasonably required


Information or an inspection can only be reasonably required where it could affect a persons tax position. If having the information or carrying out the inspection could not affect a persons tax position now or in the future it is not reasonable to require it.

Sometimes it is not possible to know for sure that the information gathered will affect a persons tax position until you get the information or carry out the inspection.

You may face claims that the information you seek does not affect a persons tax position. Such claims may be merited, and you should consider them carefully. But the key test is whether the information is reasonably required for the purpose of checking the tax position, not whether as a matter of fact it turns out to affect the tax position.

However, you must be able to show why seeking the information or carrying out the inspection may help you to



decide what the correct tax position is, or
decide how the persons tax position can be corrected, if appropriate, or
ensure that the correct amount of tax is paid or overpaid tax is repaid.
You can only correct a tax position if you can make an assessment, an amendment or a repayment within the time limits set for making them. You should ensure that you use the appropriate time limits for the particular circumstances.

Reasonably required means getting the balance right between



the burden put on someone to provide the information or face an inspection, and
how important the information or inspection is in deciding on the correct tax position.
As well as the Human Rights Act considerations, see CH21300, you should consider when to ask for information, see CH21640.

Poking a sleeping tiger with a stick ... brilliant!!

Peter

PJC Bookkeeping Services