Apology Demanded From Inland Revenue By Small Business Group

by Jason Gorringe, Tax-News.com, London

16 September 2004

The UK’s Federation of Small Businesses has called upon the Inland Revenue to apologise for the confusion and distress suffered by thousands of self assessment taxpayers who received letters suggesting they may have included inaccurate information on their tax returns.

Speaking on BBC Radio's Money Box programme, FSB spokesman David Bishop stated: "We can confidently say the letters have caused a wave of confusion and anxiety amongst self-employed people.”

He added: “We are getting contacted on a daily basis. They assume that the letters are the opening shot of a full-blown Inland Revenue investigation, and obviously that causes huge amounts of concern.”

These so-called ‘enabling letters’ have been sent out with thousands of self assessment forms for 2003/2004 and suggest that the taxpayer has made an error or omission on part of their tax return.

The letters state: "From a risk review of 2003 returns we have identified an aspect of the self-employment pages of your return which may need particular attention… I am therefore enclosing some 'questions and answers' which aim to help you with that part of the return.”

According to the Revenue, the letters were intended to help and inform taxpayers rather than frightening them into believing they were being singled out for investigation. It claimed that the letters had been "carefully targeted" and "drawn up with the help and approval of accountants."

However, Mr Bishop considers this explanation far from satisfactory.

"The Inland Revenue should set the record straight. We think that the letters are disgraceful, they should publicly apologise and write to the people who have received this letter,” he demanded.

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