Autumn 2007 Newsletter Contents Borrowed clothes? You want it when? The daily grind Knock knock Computers@home Stick to the facts It's personal Expense claims Cash down Plant buying Hobson's choice A helping hand Education, education Up with the Joneses Bills bills bills Done to a crisp Tax association

Knock knock VAT registered traders used to expect an inspection by Customs every few years. These days, with staff cutbacks, if you are a good trader who files returns and payments on time, you could go for years without being visited. But there are reports that HMRC are now increasing "surprise visits" on types of business they regard as high risk. These are generally where there is a lot of cash involved, so there is a greater potential - or temptation - for people not to declare all their takings. What do you do if someone from HMRC turns up unannounced and wants to inspect your premises and your records? The first thing, of course, is to check that they are who they say they are - any properly authorised person should not object to you ringing their office. The next thing is to know what they can do and what they can't. A Customs officer has the right to enter and inspect any premises where a business is carried on, but they can't carry out a search without a search warrant - that means they can't open a drawer or a cupboard. They can ask for information and explanations, which you have to provide - but you only have to provide them in a reasonable time. "Right now" is not always reasonable, particularly if they call during business hours and you have customers to deal with. Giving answers off the top of your head - to try to be helpful - is often dangerous, as you can give the wrong impression which it will then be hard to shift. Much better to get a list of their queries, say you'll have to check, and take advice before answering. If they want to take the records away, that has to be reasonable as well. HMRC officers don't always seem to realise that a business needs its records in order to run - they think we prepare the books just for them! So if they want something that you need, they are required to make copies without charging you. An unannounced visit from HMRC could be a nasty surprise - don't panic, be firm and know your rights. As soon as you can, ask for advice - we'll be happy to help.