In general terms the following represents the "best practice" advice to clients in advance of a meeting:-
- Be honest
- If you don't understand a question say so
- If you don't know the answer to a question say so
- Don't try and be clever
- Listen carefully to the Inspectors questions
- Keep your answers concise and to the point
- If you need a break for a cigarette or the toilet, or to speak to your adviser then say so
In an ideal world, it would be preferable to conduct a mock interview with the client, but we recognize that due to time and cost constraints this is not always possible. However, it is probable that a practitioner may at the very least be able to outline the expected structure of the meeting with the inspector which usually falls under the following headings:-
- Opening remarks and introductions
- Nature of the business
- Record keeping practices
- Cash management
- Banking practices
- Income and principal private expenditure review
- Business economics comparisons/models
- Conclusion
Carrying the client through the structure of the meeting will allow him to consider in advance some of the areas where he is going to be asked questions. This should save time at the meeting by allowing your clients to make concise, focused and well prepared answers. This ultimately should also assist the Inspector who will receive better quality information.
Finally, in our experience the one question which a practitioner should always ask his client before attending any meeting with the Inland Revenue is the obvious one namely, "is there anything you haven't told me which I should know about?" It is good practice to explain to a client the possibility of penalties being due if undisclosed income is found; the mitigations which can be earned; how an early disclosure will have a favourable influence on the determination of penalties; and also the good faith which will be engendered as a result of voluntary disclosure of information.