If you have ever been subject to a business tax enquiry by HMRC, you may well recall that one of their common tactics is to ask to see not just the business bank account statements but also your private account statements.
That has long been a bone of contention, and this will only get worse now given the removal from HMRC’s Compliance Handbook of previous assurances that private bank statements will not be requested as a matter of course in the opening enquiry letter.
We will always try to take the initiative away from HMRC in the event of a tax enquiry and will resist any unreasonable request to see your private bank statements. If you have no concerns in passing them to HMRC we will make it clear to them that although we do not consider they are entitled to see the statements, you have instructed us to send them in because you wish to co-operate fully. That is likely to score points with HMRC but at the same time, they will realise that they cannot ride roughshod over us by asking for whatever they wish!
September 29th, 2010