HMRC letter re flat-rate VAT scheme

[Alan @ BroomeAffinity]

@shazbot - This guy is an accountant so take his words very seriously.

You don't fancy putting a call in to my missus to that effect? [emoji3]

[LondonManc]

You don't fancy putting a call in to my missus to that effect? [emoji3]

Unless she's seeking your tax advice, you're not going to get anyone convincing her to be anything other than your wife in marital discussions.


In terms of the topic at hand, the questions ask about the upper contract - that would be like someone asking a retailer if they could provide details of how much John Lewis pays for the stock that they buy.

[eek]

Unless she's seeking your tax advice, you're not going to get anyone convincing her to be anything other than your wife in marital discussions.


In terms of the topic at hand, the questions ask about the upper contract - that would be like someone asking a retailer if they could provide details of how much John Lewis pays for the stock that they buy.

Read the questions on the basis that they suspect the company has been created to employ a few care workers and you can see how the questions make sense....

[LondonManc]

Read the questions on the basis that they suspect the company has been created to employ a few care workers and you can see how the questions make sense....

I don't disagree with you - but I'm still not sure how many would be privy to the upper contract if via an agency.

[SueEllen]

You don't fancy putting a call in to my missus to that effect? [emoji3]

Nope cos she's right anyway.

[shazbot]

Thanks everyone for the responses! I am taking this seriously and will get professional advice, as various people recommended.

I will talk to QDOS, though I'm not sure they will help at this stage based on answers so far.

I am contacting a lawyer with contractor / IR35 experience (not sure about VAT), and a VAT investigation specialist, WLH tax, and will probably go with WLH:

• VAT Fraud, VAT Evasion, VAT Inspection, HMRC Public Notice 160 & VAT Investigation
• COP 9 - Good accountants or solicitors? - Tax Forum :: Free Tax Advice

I don't think this is IR35 related, but some of the answers overlap with IR35 questions, and a VAT investigation (if this turned into one) is bad enough.

[shazbot]

I agree - the advice to answer these questions yourself is extremely poor advice IMO. Get an expert (QDOS/AbbeyTax) opinion. If you have IPSE+ or QDOS PEI, it should cover this.

I have QDOS TLC35 cover, which despite focus on IR35 does in fact cover any HMRC investigation including VAT, for up to £50K fees - phew! TLC35 details (For newbies like me, TLC35 essentially seems to include PEI = Professional Expenses Insurance i.e. covering accountancy/legal fees for any tax investigation.)

So I will call QDOS again to get them to take this seriously and write the answers for me. Only if that fails will I go the route of paying someone else directly for advice (AbbeyTax / WLH Tax etc).

[eek]

Yes, accountant will reply to HMRC - they've sent me an email with these questions (inserting my company name) to which I will reply, so they can reply based on the various companies being checked.

Just noticed the top bit. Firstly you want those questions answered on your behalf direct to HMRC I would bypass your accountant..

Secondly its strange that your accountant seems to have a few companies being checked yet other accountants on here have never heard of this issue. Personally it seems your accountant my be specialising in a particular part of the market you don't want to be associated with - it may be worth finding a different accountant.

[shazbot]

Just noticed the top bit. Firstly you want those questions answered on your behalf direct to HMRC I would bypass your accountant..

Secondly its strange that your accountant seems to have a few companies being checked yet other accountants on here have never heard of this issue. Personally it seems your accountant my be specialising in a particular part of the market you don't want to be associated with - it may be worth finding a different accountant.

They are quite a large contractor specialist accountant, and like many accountants these days they seem to recommend FRS VAT if your turnover is under £150K (though I did have a choice).

[RonBW]

They are quite a large contractor specialist accountant, and like many accountants these days they seem to recommend FRS VAT if your turnover is under £150K (though I did have a choice).

In the first year of VAT registration, that might still make sense. If you fall into the new 16.5% VAT rate after that, then I would consider the logic of being on FRS - it depends on what you do and whether you can be bothered to do a full VAT return instead of FRS though.