I am the last person that could be seen as diplomatic in expressing my displeasure of certain behaviours on this forum.
However we are all in danger of making this forum a centre for bickering, rather than a place to turn to for advice,information and support.
At the moment we are a forum with experts and posters giving their time for free in supporting other people, we need to value that by reconising and respecting each other and not undermining each other, whilst having diffrent view points.
The forums aims should be to keep the exsisting experts and posters whilst encouraging newer members to participating.
If you'd like an observation rather than an opinion, Kazza, I've been called patronising and supercilious by two of the posters on here today and I would suggest that if I'm to re-read before posting to check the tone, these posters are obviously themselves more than indifferent to both the tone and words they're using.
Thank you for the intervention, Ginger. I've always tried to direct anything I've had to say to the question. Unfortunately, there are some posters on the forum who see every post as a comment on their own. Short of limiting every question to a single answer, I don't know what can be done about that.
Tiger. You must admit that there are not a huge number from IP firms who regularly post and Melanie is the only IP who is a regular supporter of the Forum. As a result, I personally feel at times that I am defending the whole industry and Melanie may well feel the same. Regardless of what our own firms do, we are having to justify or attempt to explain decisions of other firms and the regulators.
There are issues and there are rogues in the industry but these people are not coming on to the Forum to justify themselves. It is left to the likes of Melanie to get it in the neck because she is prepared to put herslf out there and at least try and explain her position. Ultimately, we can only speak for our own firms and practices and rightly or wrongly how we reached our decisions.
Thanks for all your interesting views and advice.
Michael has a very salient point. Whether you are guilty of anything or not, it costs to be professionally represented in an inquiry. We`ve already spent £1000 so far - and you don`t get "costs awarded" if you are proved innocent. Justice can come at a very high price.
Of course large businesses employ people, and departments, that are able respond to such investigations. There has been a lot of bad press over the last year accusing HMRC of a deliberate strategy moving away from targetting large companies, to bullying small businesses, which they look upon as easy prey, given the alternative to accepting their findings - accountants fees, more time and more stress. It`s cheaper to pay the fine than fight it and possibly incur bigger penalties.
Anyway back to my letter from HMRC which will arrive at the IP tomorrow. Its 3 sides long and sets out his finding - that "additions to taxable profits should be made for the Income Tax Self Assessment Years 2009 and 2010". There are details of the appeal mechanism if I disagree with the notice of closure for 2009 and letter of assessment 2010 he is going to send. On the plus side no penalties are due "without prejudice"
Clearly action is required in response. Considering I havn`t heard a squeak from VAS Worthing due to their backlog will I be covered passing the case over to the IP and taking it from there? Am I right in assuming the VAS will be more understanding of how people in struggling small businesses might use unsecured credit, and "rob Peter to pay Paul" without actually fiddling anything? I have to admit the finance is a bit complicated and the last thing I want to do is waste more time and spend more money I havn`t got fending off the local inspector who hasn`t got a case.
Michael, I admire hugely the fact that you and Melanie - almost alone amongst the industry - continue on this forum despite taking entirely undeserved flak from some. I've never directed any criticism against either of you - why would I? That doesn't absolve the industry as a whole, however, or address the issues coming in from questioners. The professional slant you can put on much of what is going on is extraordinarily valuable and I for one hope that will continue. You know the companies that I think should be shame-faced about what's been going on and you're right to distance yourself from them whenever possible. I really cannot be any clearer and yes Kazza , I've re-read this !
It is almost impossible to estimate the HMRC claim as it includes the liability for the year in which the IVA commenced. Ask your IP if this affect your IVA by including the extra £9k and if it is within the 10% barrier it might be easier to just move on. If it is outside the 10% you have the option of the appeals process which you can do yourself without incurring fees or your IP can ask VAS if they will accept a variation to include the larger debt.
I personally see no point in continuing on with the appeal unless you have to as there is no benefit to you even if you win. It does sound like errors have been found rather than your returns being fraudulent otherwise HMRC could have been a lot worse.
And just to put a dampener on this even more, VAS have a backlog of over 12 months worth of claims so it could be some time before you get absolute resolution on this matter.
Whilst it is easy to say throw in the towel - and I suspect that is what I would do because as Michael says you may have nothing to gain from fighting to prove that you are right - assuming you have an ongoing trade you will have to continue to deal with and service HMRC requirements, so it does help to have a relatively cordial relationship with your local tax office.
