Random Hmc Check

[jaycee401]

my self employed friend (sole trader) has received a letter from hmc saying she has been randonly picked for a check to ensure she is keeping correct records and paying the right amount of tax. She has to phone them in the morning and is now in a panic. Her invoices (lots of them) are all in date order in files. A month back her laptop was attacked with a virus and she has had a new harddrive, no files were saved so she has lost most of the accounts, as she had only just started to back up her files!! This can be proved by the pc man! Apart from that catastrophie, she is panicing she has done something wrong. What happens on these checks, do they come to the house, where her office is? Do they check all receipts? Any help gratefully appreciated

[Buenchico]

This might help:
http://www.litrg.org.uk/low-income-workers/self-employed/enq-penalties-debt/how-to-survive

[VHG]

Even if the laptop had a virus it would have been easy to copy files off the hard drive and save them.

This was bad work by the PC man.

[Twenty20]

It'll probably be mostly receipts for purchases they'll be looking at, plus expenses etc. She'll still have all the hard copy receipts, wont she?

Obviously she has a back up - doesn't matter if she's only just started backing up as you say, everything will have got backed up, nobody would just back up the more recent stuff.

Unless, of course, she's been fiddling her figures and thinks a mystery virus might be a good way out of it. But I'm afraid that wont work, they'll have heard that one loads of times before.

[jaycee401]

Thanks for the answers, sorry when I say she has just started backing up, that's since she has had new hard drive, and yes she is furious with the pc man!! She has all hard copies so if need be will re imput everything. the letter states they will ring her after 19th July or she can ring them, they will ask a few questions about how she keeps her records and if need be they may arrange a visit.

[Zacs-Master]

she is furious with the pc man!

Why?

[jaycee401]

because he never gave her the chance to save her accounts, she could of emailed them and then would of had them. I know its her fault for not backing up!

[Zacs-Master]

Then she should be furious with herself. Silly woman.

[bednobs]

well, she has some time at least. she would have been planni.ng to do the job of re-entering the details anyway, she just has to do it on a deadline now. The great thing at least is it's only since april - not long

[jaycee401]

She is furious with herself! Thanks Bednobs, will it most likely be from April 2013 to present as oppose to April 2012-March 2013 her last tax year?

[jaycee401]

I should of said its her accounts first 2 years that she has lost 1.4.11 - 31.3.12 and 1.4.12-31.3.13