Tax investigations - personal bank statements

Often the Taxman will ask to see personal bank statements when he is in the course of a company tax enquiry. He is trying to identify untaxed receipts on your statements so that he can then try to charge extra tax.

The way around this is to regularly note on your personal bank statements the reason for any one off bankings. For example, remortgages, repayment of loans, gifts, gambling winnings. Obviously, it will also help if you keep some documentary evidence of these receipts.