SRR1

From Taxation Interventions Register

One of the roles of HMRC is to help customers get their tax returns right, so that they pay the right amount of tax or receive the right benefits.

We are testing new ways of working with customers which we believe will be less time consuming and less complicated than other procedures we use. Your participation in this trial is voluntary and this is not a notice of intention to enquire under our existing formal powers. We feel that these new approaches will help customers to deal with any mistakes quickly and get their tax right now and for the future.

In our experience,businesses in the jewellery trade may incorrectly calculate the value of closing stock.Your 2005 return shows a lower than expected value for closing stock. You can use the HMRC website to find out how to deal with these items correctly for tax purposes.You may find it useful to use the following site navigation: hhtp:/www.hmrc.gov.uk/manuals/BIM 33100.htm

In addition, if you have any queries of a general nature, you may wish to contact: National Self Assessment Helpline on 0845 9000 444.

There may be many reasons why your closing stock is less than we would normally expect,but I would like you to look again at the value of the closing stock in your 2005 return and, having done so , complte the attached questionaire and return it to me by th 8th August 2006.

If there is anything you do not understand or wish to discuss, you are welcome to ring me on the above number.

A copy of this letter has been sent to your representative.