Tax Investigations

[Jonathan c]

Hi Guys
Just wondered how many of you hairdressers had tax investigations this year?
The word is that there is a new push on this to raise more revenue for the goverment?

 

[VillageNails]

my husband has been a mobile hairdresser for 27 years and has been investigated TWICE.
His first year when he didnt declare any tips (he used those for his wages and didnt take an income)
He was investigated again when we married 15 years ago as you then had married persons allowance.
Lucky maybe - but we always pay an accountant to do tax return and annual profit/loss sheet to keep things tidy

 

[Jonathan c]

my husband has been a mobile hairdresser for 27 years and has been investigated TWICE.
His first year when he didnt declare any tips (he used those for his wages and didnt take an income)
He was investigated again when we married 15 years ago as you then had married persons allowance.
Lucky maybe - but we always pay an accountant to do tax return and annual profit/loss sheet to keep things tidy

Yes, if you have a good book keeping service all should be fine! I think that often people can be caught out when the rules change and you are not aware or well advised. Anyone had experience of this?

 

[1999judy]

Yes, if you have a good book keeping service all should be fine! I think that often people can be caught out when the rules change and you are not aware or well advised. Anyone had experience of this?

If you know the number of your tax office give them a ring hun and they will send you all the latest leaflets etc.
And ask them if there are any changes you need to know.

 

[collin]

mmmm ok so yes its a well know fact that the tax office do have a purge on certain sectors and certainly the construction industry was one such sector that got a hammering.
I'm not quiet sure that the hairdressing sector is either large enough or provides sufficient revenue into greedy Gordon's coffers to merit a purge on this sector specifically.

The reality is that it is the filing of your tax return itself that either causes the computer to say "uh oh" things dont look right here because the numbers have changed significantly since last years return or that there is an " exceptional cost" or "wright off" shown in the accounts or of course if your simply one of those unlucky blighter's that the computer has randomly chosen for an investigation or that your subject to a hate grassing up by a competitor or someone who simply doesnt like you.

So many things can cause an investigation..

the key is to have everything in order and engage a good accountant who will look after changes in allowances etc for you :hug:

 

[1999judy]

Not EVERYONE can afford to pay an accountant.
JMHO

 

[1999judy]

Sometimes the tax office has a certain thing they focus in.....certain jobs etc. I can't really say but it's good to have an accountant if you can afford or to keep your books in order if you can't.
jmho

 

[collin]

Not EVERYONE can afford to pay an accountant.
JMHO

Beleive me a good accountant can save you much more than their fees do :hug:

 

[VillageNails]

Not EVERYONE can afford to pay an accountant.
JMHO

if you are self employed you can't afford NOT to have an accountant IMO

 

[Laydee Danielle]

from an adviser point of view (I am a specialist money adviser) if I was to be self employed I would have an account. There are so many things that could go wrong.......

The penalties the Inland Revenue add are rather scary, also they charge 7.3% interest!

I understand there are people that can't afford an account, if thats the case keep EVERYTHING, so that if you do get investigated you have all your records.

Keep records as long as possible. The Inland Revenue have the power to go back 20 years

 

[Bagpuss]

I'm with Judy...I don't have an accountant as i cant afford one...but there is only me....its not rocket science and i manage quite well doing my own books. I took the offer of a free, 1 day basic booking keeping course through the inland revenue when i first registered my business. They told me to keep things simple...a normal A4 book with a list of "INS"...a list of "OUTS" and keep all reciepts....my diary matches my ins and my receipts matches my outs....the difference is my profit.

I appreciate its alot more complicated the bigger your business is but for just me it works fine.