LordThornber Posted January 19, 2009 Share Posted January 19, 2009 Hello wise ones, I realise this query is very vague but I'm asking on behalf of an older friend to hopefully give him a few pointers. He is retired, (72), and owns a farm. For the past 50, (fifty!), years or so he has reared and sold turkeys as an additional income. His primary job was not as a Farmer. He always paid his PAYE, as you do. It turns out that IR have been in touch with him, (he's no idea how they know), and are are poking their nose into the turkey caper. He's never declared any of this income, & he pays out to casual staff at Xmas for labour, (usually family). How far back can the IR go on this? Is it unlimited? He's not losing any sleep over it, he's not that kind of chap, I've suggested engaging an accountant but so far without any joy. Any pointers/hints/tips welcome!! Many thanks in advance Martyn Link to comment Share on other sites More sharing options...
Bazza454 Posted January 19, 2009 Share Posted January 19, 2009 Martyn,I think that you've already given your friend the best advice, he should employ an accountant who specialises in tax affairs asap.My understanding is that the IR usually go back 6 years at the start of an investigation, but in extreme cases they will investigate the previous 20 years.There is plenty of information on the web giving details of fines, interest payments etc, just Google "tax investigation." Link to comment Share on other sites More sharing options...
LordThornber Posted January 19, 2009 Author Share Posted January 19, 2009 Hello Barry, thanks for that. I genuinely hadn't thought of Googling anything on this subject, how daft is that? I will have a go and see what I can turn up. Martyn Link to comment Share on other sites More sharing options...
nightrider Posted January 19, 2009 Share Posted January 19, 2009 The inland revenue play the game according to their own rules, and worse than a ratter when they get their teeth into something, the first port of call is a good accountant as I know to my cost, the tax people are not pussycats. Link to comment Share on other sites More sharing options...
bob b Posted January 19, 2009 Share Posted January 19, 2009 They'll go back as far as they please, estimate the tax owed. Then they will charge interest on the sum and can fine your friend 10% on top.They will also go through his accounts every year with a 'fine tooth comb' until he dies.I do know that they scan the small ads in local papers, newsagents, etc. Don't forget the Revenue staff are on bonus now. Link to comment Share on other sites More sharing options...
nightrider Posted January 19, 2009 Share Posted January 19, 2009 About five years ago I had a phone call from a guy who wanted a price for taking out a hedge at the bottom of his garden. I went down to have a look at it and it was a very difficult job to do, it was a hawthorn hedge that had intertwined itself in and around the old metal farm fence, hawthorn hedges are murder to deal with due to the very sharp spines. All the waste had to be dragged to the roadway to be processed in the shredder which added time to the job, I gave the guy a price to which he pulled a face, he then said how much discount for cash? I replied that the price was the same whether you pay cash or by cheque if you want a discount go to Curry's or Dixons they give discounts I dont. He then said "come on now" I work for the revenue and I know guys like you will take cash in the hand. As soon as he said that I said I dont want the job get someone else, I knew what would be coming and sure enough it did, a letter from the revenue people saying words to the effect we have recieved information etc etc etc. fortunately my books were in apple pie order, that guy had grassed me up. Two types of people that I wont do work for are those who when they phone for a quote say, do you discount for cash, and are you insured? This guy is too long in the tooth to fall for a three card trick. Link to comment Share on other sites More sharing options...
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