Dissolving company

11 May 2006

Issue: 4057 / Categories: Forum & Feedback , IR35

A new client of mine is currently under investigation by HMRC. Her 2000 and 2001 self assessment tax returns are presently outstanding, but I have seen a copy of a letter previously sent by her and addressed to the Inland Revenue stating that she did not have any income in these years.

The friendly Inspector has indicated to me that she was trading in the year and that he has the evidence to prove it. I have subsequently discovered that she was a director of a company that was incorporated in 1999 and which was then dissolved in 2001 and that no accounts were ever submitted.
I suspect that there are no books and records in respect of this company although we may be able to obtain bank statements.
HMRC say that they intend to go back further years and assess her on £75 000 per annum.
Do readers have any similar experiences and can anyone point me in the right direction?
Query T16 807 — Book-keeper.

Reply by Shap:

The company may or may not be relevant to HMRC's investigation but the situation appears to have all the elements of a classic back duty enquiry and requires far-reaching...

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