[Misc] HMRC Audit

[Brian Fantana]

Morning all,

Does anyone have any experience or knowledge of HMRC audits? I've currently got a customer who is claiming that they can't pay an invoice at the moment because their company is undergoing one of these audits, and their finance department is consequently unable to make any payments.

It's got the potential hallmarks of bullshit, but I just wanted to check with the sages of NSC before going any further.

Cheers,

BF

 

[Weststander]

They’re lying.

 

[Originunknown]

You mean they won't pay, rather than they can't pay.

Likely they're expecting a bill from the HMRC following the audit that they can't pay so they won't pay you first.

 

[Brian Fantana]

They’re lying.

You mean they won't pay, rather than they can't pay.

Likely they're expecting a bill from the HMRC following the audit that they can't pay so they won't pay you first.

Thanks both. That's what I suspected.

Is there any information that I can quote at them to make them understand that I know that they are lying? I had a quick Google on the topic but I couldn't find anything that explicitly said that payments could/couldn't be made during an audit.

 

[Originunknown]

Thanks both. That's what I suspected.

Is there any information that I can quote at them to make them understand that I know that they are lying? I had a quick Google on the topic but I couldn't find anything that explicitly said that payments could/couldn't be made during an audit.

You could ask them to prove HMRC have frozen their accounts, or get in touch with the HMRC and ask them to confirm whether they have frozen their assets or via legal representation if you have it.

 

[Springal]

Ask them for a copy of the letter or email (with headers) that explains this

 

[Brian Fantana]

You could ask them to prove HMRC have frozen their accounts, or get in touch with the HMRC and ask them to confirm whether they have frozen their assets or via legal representation if you have it.

Will do, thanks.

 

[beorhthelm]

logically any audit would be for previous tax years, so current business would be unaffected. also audit would be on the trail of money into and out of accounts, not on seizing their bank accounts and entire business in the process.

as above, probably their finance department is blocking payments. lawyer up to get to the front of the queue...

 

[VAL1850]

I'm currently going down this route to someone who has taken payment. But not delivered, HRMC iftax evasion is found will back tax 4 or 6 years
https://www.gov.uk/report-an-unregistered-trader-or-business

 

[Beach Hut]

Sounds like another one from the big book of excuses on not paying

 

[Brian Fantana]

Thanks all. I've asked for proof of not being able to pay due to the audit. I'll sit back and await the next bullshit-covered cab off the rank, as it were.

 

[rippleman]

If the investigation involves money laundering offences then the bank accounts may well have been frozen.

99% of HMRC enquiries would not impact on the company's ability to pay its debts. It's an excuse; have they provided any evidence that there even is an enquiry? More likely BS because they can't afford to pay.

I would be inclined to get your claim into court before they have the chance to wind the company up.

Keep an eye on Companies House and as soon as an application is made for the company to be wound up appears, get your objection in. If you don't object to a winding-up application and the company is struck off, your money has gone.
(Watch out for companies that don't file accounts; the Registrar will strike-off a company for non-compliance eventually)

If you don't know your way around the company register, PM me your debtor and I'll check it out for you.

 

[Brian Fantana]

If the investigation involves money laundering offences then the bank accounts may well have been frozen.

99% of HMRC enquiries would not impact on the company's ability to pay its debts. It's an excuse; have they provided any evidence that there even is an enquiry? More likely BS because they can't afford to pay.

I would be inclined to get your claim into court before they have the chance to wind the company up.

Keep an eye on Companies House and as soon as an application is made for the company to be wound up appears, get your objection in. If you don't object to a winding-up application and the company is struck off, your money has gone.
(Watch out for companies that don't file accounts; the Registrar will strike-off a company for non-compliance eventually)

If you don't know your way around the company register, PM me your debtor and I'll check it out for you.

Thanks so much for this.

To be honest, before this nonsense excuse of about an audit came up I was about to begin a court claim anyway, so this has probably just expedited that!

 

[wunt be druv]

Utter bollocks, I have had an audit by HMRC and it did not affect our day to day business in any way, I just kept them supplied with coffee and cakes and they got on with it, couldn't have been more accommodating not to disrupt us.

 

[sydney]

Thanks both. That's what I suspected.

Is there any information that I can quote at them to make them understand that I know that they are lying? I had a quick Google on the topic but I couldn't find anything that explicitly said that payments could/couldn't be made during an audit.

just tell them the invoice remains valid under the original terms , HMRC is a third party and has nothing to do with you and your outstanding bill ....did you have terms 14 days , 28 days .....?? tell them interest will be added to the bill after the established time has passed.

 

[rippleman]

just tell them the invoice remains valid under the original terms , HMRC is a third party and has nothing to do with you and your outstanding bill ....did you have terms 14 days , 28 days .....?? tell them interest will be added to the bill after the established time has passed.

Very good point. On a CC claim you can charge interest at a whopping 8%!

https://www.gov.uk/make-court-claim-for-money/work-out-interest

 

[Weststander]

You could ask them to prove HMRC have frozen their accounts, or get in touch with the HMRC and ask them to confirm whether they have frozen their assets or via legal representation if you have it.

HMRC won't reveal a thing, in my experience. Bound by data protection.

 

[rippleman]

HMRC won't reveal a thing, in my experience. Bound by data protection.

100% correct.

You would be wasting your time asking HMRC

 

[Brian Fantana]

For anyone remotely interested, their lie really didn't stand up to scrutiny. Simply asking for evidence that they were unable to pay as a result of the HMRC audit (I politely asked for this or else I'd be kicking off a court claim) resulted in full payment this afternoon