We recently took the brave step of retraining staff on how self employed claims should be dealt with and included a revised process for taxi drivers. To cut a long story short we are now comparing the declared income (whether by accounts or self declaration) with an assessment made using mileage declared to taxi licensing colleagues. You won’t be surprised to hear that it has generated appeals and a few complaints (from both customers and staff).
I’m now looking at revising the process because on the face of it we have made it too simplistic and have effectivel removed an avenue of challenge.
I am looking to propose that we should compare the two calculations (our own and that provided) and where there is an obvious discrepancy we should ask the customer to clarify the discrepancy. If we get clarification and are happy with it we establish a weekly income based upon that explanation (which could be somewhere between the two calculations).
If we don’t receive clarification which is acceptable then we will have to draw an adverse inference which might give us a weekly income upto the figure derived from the mileage declared to licensing.
This looks to be consistent with the investigation that is sometimes (possibly very rarely) undertaken by HMRC.
http://www.hmrc.gov.uk/bens/ben25.htm
and a commissioners case on child support
http://www.osscsc.gov.uk/judgmentfiles/j988/ccs%203405%202002.doc
I’d appreciate any views including the “your stuck with the accounts presented” argument which I know is favoured by some.
I’ve looked at the HB regs and can find nothing to suggest that we can’t depart from accounts prepared by an accountant but it is possible that there are more more general principles that I’m unaware of.
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