After the returns come the enquiries

Just when you breathe a sigh of relief at submitting your tax return by the end of January - the next stage of the Revenue's actions is poised to begin - with tens of thousands of enquiries into the returns.

According to the Mail on Sunday, the Revenue makes up to 80,000 enquiries into the self-assessment returns, many prompted by something unusual, for example a claim for a phone bill which does not take account of personal calls; undeclared interest from a savings account or valuation of assets. Self-employed and small businesses are often among the targets with the building trade at the top of the list.

The Mail on Sunday claimed that the taxman raked in £255.5m last year in extra tax, interest and penalties after completing more than 42,000 'aspect' inquiries, which focus on a single anomaly on a tax return, and 36,000 full enquiries. The Revenue will not say how many random inquiries it makes.

The enquiry can start with a Section 9A letter which the Revenue can send out within 12 months of the final filing date. A number of these letters have gone out recently as the Revenue rushed to meet its own deadline for starting enquiries into 2002/3 returns.

Full article: Return of the taxman - Mail on Sunday