Section 29 Assessment Enquiry has turned up

[Jessica@WhiteFieldTax]

HMRC wouldn't know it’s TLC35, just that your advisor is called Qdos. I doubt the Self Assessment teams would even know who Qdos were.

Frustrating when it comes up at a weekend, but this type of thing isn’t uncommon. Your accountants should help you unpick next week, but run it past Qdos if you are unsure after speaking with them.

[7specialgems]

I think the risk of it triggering IR35 interest is negligible.

I hope so Jessica! But this is my quandary with TLC35 as a defence for a personal enquiry - whilst I am generally confident I have nothing to hide, I don't to generate IR35 interest by myself!

Frustrated that this has landed over the bank holiday weekend. I want to get moving sorting this out! :-)

[Jessica@WhiteFieldTax]

Thanks for sharing your advice and experiences so far everyone.

Very interesting info about Connect too.

I will contact my accountant asking them to inform me of HMRC's requests before servicing them.

I will also examine the terms of TLC35.

I am happy enough with the SA enquiry and proving my figures.

But my great fear is escalation into a full blown IR35 enquiry.

I feel confident that I have acted diligently from the outset so if it did go that far then I would hope that my records and TLC35 would result in another item in the nil column for HMRC.

But I have a lot going on at home at the moment including a new arrival and I could do without the hassle hanging over me.

Has anyone on here experienced this and had it escalated?

IR35 comes down Employers Compliance Route, and is initially an investigation into the company. This is a personal assessment. Although one never says never, generally HMRC aren't that joined up. Different departments. I think the risk of it triggering IR35 interest is negligible.

[radish2008]

At basic rate.

Not all of it though. Just the interest you earn. Mine was taken off by Sharkleys before they cut the cheque. And it was a cheque.

[7specialgems]

Thanks for sharing your advice and experiences so far everyone.

Very interesting info about Connect too.

I will contact my accountant asking them to inform me of HMRC's requests before servicing them.

I will also examine the terms of TLC35.

I am happy enough with the SA enquiry and proving my figures.

But my great fear is escalation into a full blown IR35 enquiry.

I feel confident that I have acted diligently from the outset so if it did go that far then I would hope that my records and TLC35 would result in another item in the nil column for HMRC.

But I have a lot going on at home at the moment including a new arrival and I could do without the hassle hanging over me.

Has anyone on here experienced this and had it escalated?

[Alan @ BroomeAffinity]

Speak to your accountant. Get them to handle it bit if you have insurance invoke that so that the fees are covered. If you’re concerned about over providing, ensure you approve everything before he/she sends it.

[mudskipper]

Aren't they taxed at source before the only is given to you ?

At basic rate.

[radish2008]

A friend had this recently, could not think what the undeclared income was - turns out it was his PPI compo claim.

Aren't they taxed at source before the only is given to you ?

[BlueSharp]

Check the terms of your insurance as not telling them may invalidate it.

[mudskipper]

A friend had this recently, could not think what the undeclared income was - turns out it was his PPI compo claim.

[Hobosapien]

Ask your accountant for feedback on how they think HMRC have arrived at the £7k undeclared income, seeing as they did the SA being queried they should have the breakdown (or provided a copy to you for safe keeping).

Maybe you have other income such as from a rental property, or online sales (ebay etc) that HMRC think you didn't include in the SA. Could be they made the 'discovery' via their Connect system.

So give your accountant as much info as you can and see if they can work out what has happened. Then you can provide those findings to HMRC and pay up any dues if due, or tell them to contact your accountant if they want to investigate further.

[SueEllen]

If you have insurance use it.

[7specialgems]

Out of the blue for 3 or so years ago.

No idea where Hector is getting his figures from but thinks I've underdeclared income by approx £7k.

Both my SA and overlapping company returns done by my current accountant.

Have checked payments myself and think nothing wrong with the SA so god knows what the 'discovery' is.

Simple q from me. Do I invoke TLC35 or refer HMRC to my accountant for this?

Concerned that speaking directly could result in me misresenting myself and making things worse.

Concerned that referring to accountant could result in accountant giving HMRC everything and anything they could result in me being misrepresented.

Concerned that invoking TLC35 for a self assessment matter waves an enormous sign at Hector saying 'im an IT contractor have a deeper look'.

Clearly I want a swift and certain resolution because I do not want this escalating into a full blown IR35 enquiry.

I do not/have not ever participated in any schemes nor do I have any offshorr arrangements. Only accounts in play are my current account and my biz account.

Wouldn't shock me if the accountant has not logged expenses or put wrong figure in wrong box (we are all human), but obviously this is very unwelcome attention and I am now looking at the letter box every morning hoping not to see brown letters pertaining to IR35.

I have one month to answer the enquiry directly or indirectly, proving my working.

Unsure which stakeholder should answer on my behalf.