Self Assessment : IR checking

Mike · 18-12-2005, 16:48

Hi all

Just having completed my 04/05 self assessment online I wondered how many the IR actually check ????. It could be quite easy to make a mistake and increase or lower your taxable income. Do they check so many per hundred or based on a margin of difference against prevoius years ! If they do check how many times do they actually want to see backup documentation as opposed to asking you to claify a figure ?????

Mike

Bifta · 18-12-2005, 17:26

I don't know how many they check, they have to take a certain amount as read though. You can guarantee that pretty much everyone who's self employed (and is honest enough to have declared themselves as such to the IR) can expect some form of IR audit during their self employed lives, so if there are any false returns (mistakenly filled in or not) they will find it eventually and the person will end up having to pay for the mistake.

Mike · 18-12-2005, 17:30

Quote:

Originally Posted by Bifta

I don't know how many they check, they have to take a certain amount as read though. You can guarantee that pretty much everyone who's self employed (and is honest enough to have declared themselves as such to the IR) can expect some form of IR audit during their self employed lives, so if there are any false returns (mistakenly filled in or not) they will find it eventually and the person will end up having to pay for the mistake.

Yes I can understand this in the good old days when people filled in tax returns by pen but given the take up of filling things in online I guess things must have changed ..........they can not read through everyone there is no point (all calcuations will be correct) It down to what people declare !

Flubflow · 18-12-2005, 17:39

but they may have certain obvious triggers for a manual check/audit such as a massive sudden decrease in taxable income (or a large increase in expenses, excluding capital allowances, without a corresponding increase in income). Also things like carrying a loss for several years running as a sole trader may cause them to wonder how you can actually exist.

Mike · 20-12-2005, 13:56

Maybe I should just submit 30 Jan 2006

Hopefully it will be processed quicker on line ?

Mike