Minimise tax investigation chances

Heres a useful Accounting Web article on how to reduce the chances of the Taxman selecting you for an investigation.

Should you be unlucky enough to be chosen, here are a few tips to level the playing field:
- explain to the Taxman how your business works - this will often reduce the number of queries raised
- offer access to your records at your accountants’ premises and ask him to let you know which papers he requires copying. Don’t let him take whole files away otherwise he could pour over them for hours analysing every small comment on every page.
- if computer files are requested give him printouts of the requested reports - giving him the data in electronic format would enable him to interrogate the data further
- if any difficult questions are asked simply say, you don’t know and ask him to put his request in writing. This gives you time to give a more considered response.