As in previous years, HMRC offices will be sending out letters over the next few weeks with advice for small businesses on calculating business income for the purposes of self assessment. The letters have been criticised in the past for giving the impression to taxpayers that there was something wrong with their tax returns.

HMRC select those businesses which they believe may be likely to make errors when completing their accounts or self assessment tax returns. The letters are issued after statistical analysis of the businesses accounts information from previous years or where HMRC believe the business operates in what they regard as a risky area. Where taxpayers have an accountant acting on their behalf, the accountant should also be issued with a copy of the letter.

If you receive a letter it is very important that you get in touch.

Internet link:

HMRC letters