Did you know that nearly half of all small businesses employ neither an accountant or a bookkeeper…
But the evidence is clear; when you include all the reliefs and expenses you may have missed, you’ll usually save more in tax than you pay in accounting fees!
That’s not even considering the time saved by not having to do your VAT returns, submit accounts and all that other fun stuff you’d rather not be doing on a Sunday evening…
But there’s one extra bonus many don’t consider. Your accountant’s relationship and ability to deal with HMRC when you need it.
Why is a good relationship with HMRC important?
There are usually two times when you need to engage in two way dialogue with HMRC:
When you need to negotiate payment terms for a liability you are struggling to pay
When you need to rectify a mistake (contact either initiated by HMRC or you)
In either scenario, knowing how to deal with HMRC is crucial. The manner in which you approach any dealings regardless of the order of magnitude will impact your finances and any future relationship… and let’s be frank, no business wants or needs a bad relationship with HMRC!
At RJF we’ve got a lot of experience with HMRC, we often speak to HMRC on behalf of clients and know how to deal with them to get the best result for everyone involved.
What do you do if you get an investigation letter from HMRC?
Let’s assume that brown envelope has hit your desk – you open it expecting it to be nothing and it’s actually a letter from HMRC stating they require more information from you with regard to your last submission.
First things first don’t panic! It’s often a simple clarification question that needs a satisfactory answer.
But if it’s something more challenging this is where a good accountant comes into play.
Our golden rules when dealing with HMRC are:
- Be timely with replies
- Keep an open dialogue
- Be honest and open
- DO NOT LIE!
If you follow these rules HMRC will treat you much better than if you do not (especially the lying part!)
Burying your head in the sand and ignoring things will only make it worse. HMRC can get very aggressive when they want to be. Don’t forget, when they don’t hear from you, they’ll just assume the worst-case scenario and initiate procedures with that assumption.
RJF’s relationship with HMRC
We are very familiar with dealing with HMRC, we know how to work with them, what they are looking for and how to get them onside.
We’re proud to say we’ve got great results from HMRC for our clients because we know how they operate, what they want and how to deal with them.
If you’d like to become a client and benefit from our expertise and relationship with HMRC get in touch today and we’ll be happy to answer any questions you may have.