Here at Green Accountancy we always want to check income against actual bank statements. This applies to companies, sole traders, landlords letting income, personal tax, VAT returns, pretty much all work we do.
A recent tax case highlighted the benefit of checking income to bank statements. HMRC found there was income on bank statements not declared as income by the taxpayer. Not only was there additional tax to pay, HMRC also charged a whopping 59.5% penalty (reduced to 25.5% on appeal).
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.