Freelance UK - News Sponsorship
	Freelance UK Money Club  Mortgages - Income Protection - Retirement Planning - Life Cover  No consultation fees, no pressure, just free, impartial advice from  specialist IFA FreelancerMoney.

Revenue asked for public apology

The standard letters warn of a possible investigation by the Revenue because the recipient may have claimed too much in expenses and therefore not enough tax. The letters were sent to self-employed people earning less than £15,000 a year, who had a high proportion of their turnover taken in expenses.

The Revenue has admitted that people sent these letters may have done nothing wrong. It said the letters were merely intended to help and inform people, enabling them to fill in their tax return correctly.

But the Federation of Small Businesses does not accept the Revenue's explanation for the 'disgraceful' letters which it said have caused a wave of anxiety and confusion. In particular the paragraph which says:

"We have identified an aspect of your return which may need particular attention. We want to help you get this aspect right first time, which may avoid the need for an enquiry."

Speaking to the BBC's Money Box programme, FSB spokesman David Bishop said:

"They assume that the letters are the opening shot of a full-blown Inland Revenue investigation. Obviously that causes a huge amount of concern. The letters have caused a wave of confusion and anxiety amongst self-employed people."

In a statement to the BBC the Revenue said the letters had been drawn up with the help and approval of accountants, and added:

"The letters are about enabling taxpayers to complete their returns as accurately as possible.

"Taxpayers who receive these letters are selected very carefully so that help is focussed on those who need it.

"Only a tiny fraction of the total self-assessment population will receive these letters."

For more information please see the whole article at the BBC web site

Sep 14, 2004
Email this article
Printer friendly page

Previous Page