If you believe current general opinion on revenue audits less than 4% of revenue audits are now selected on a random basis. The revenue is reportedly using a tool called Risk evaluation Analysis and Profiling – REA, to look for variations and unusual differences in certain sectors. However, if you ensure the following you might be able to limit the chances of a revenue audit;
1. Ensure you file and pay all your tax returns on time.
2. Ensure all employees are registered as employees with the revenue and not as subcontractors.
3. Ensure all travel claimed is within revenue guidelines IT54 Subsistence Expenses to Employees can be used as a guide.
4. Ensure you declare all your income, for example don’t forget to include the rent from property mentioned on LPT return in your tax return or forget to include the sales of imports in the VAT return.
5. Ensure you only claim valid business expenses, only claim expenses that directly relate to your current trade and that you have a paper or PDF invoice for.
If you do get selected for a revenue audit or need any advice on tax please free to contact me.