THE GUV'NOR

Paul Clerehugh

Be prepared for

unannounced visits from the tax man, warns the licensee of the Crooked Billet in

Stoke-Rowe, Oxfordshire

Recently I experienced an uncomfortable HMRC (Her Majesty's Revenue &

Customs) double-hit.

I have two outlets: London Street Brasserie in Reading, Berkshire, and the Crooked Billet near Henley-on-Thames, south Oxfordshire. At the Reading restaurant, a friendly HMRC telephone caller explained that she needed to conduct a simple phone questionnaire.

By a stroke of luck, I had attended a tax seminar conducted by Vantis tax consultants the previous evening. It warned of the

new HMRC telephone investigations, and advised us to pass calls on to a specialist such as an

accountant rather than attempting to deal personally with questions. The voice turned less friendly when I suggested she contacted my accountant, although we are within our rights to do so.

At exactly the same time, the Crooked Billet received an unannounced HMRC visit - but I was in Reading.

According to the new HMRC policy of what it calls "unannounced visits", VAT officers can turn up without an appointment, take records, grill the occupier and thoroughly investigate a till system.

My records were with my book-keeper; they looked at my EPoS and cash register systems and left satisfied.

According to VAT Solutions director Steve Allen, HMRC has extensive powers, but they don't include giving it authority to undertake unannounced visits.

HMRC's powers allow it to enter premises to inspect at any "reasonable time"; VAT officers can demand records and impose fines for non-production. But officers have no authority to examine tills or take records if this is inconvenient for the operator, who can request an

appointment; nor have they powers to question orally or demand on-the-spot answers.

For information contact www.vatsolutions-uk.com

or www.vantisplc.com