HMRC are looking for your overseas assets, income or gains
In March 2021, another round of nudge letters have been issued. This time they are following up on the information they have been supplied under the Common Reporting Standard (CRS). Other than saying “we have information … … …”, HMRC don’t tell you what they know or rather suspect. Yes HMRC has information on overseas assets – but is simple ownership leading to a tax liability?
Notices to provide documentation – whatever you do, don’t destroy it!
HMRC regularly obtain information and documentation from a number of sources. More recently this is under the Common Reporting Standard (CRS). But HMRC’s thirst for more and more can lead to HMRC issuing Notices to provide documentation under Schedule 36 Finance Act 2008. The worst thing that can happen is the documentation is now destroyed. This can lead to a fine or worst still, imprisonment.
HMRC to undertake increased compliance activity on disguised remuneration
Some employers and individuals can expect contact from HMRC regarding the Loan Charge. Employers should have reported and paid the Loan Charge by now. According to HMRC, there are “number of those have not yet done so”. I am not at all surprised by this for a number of reasons. Whether its called Disguised Remuneration or the Loan Charge, its not going to go away.
HMRC thoughts on tax evasion – is the answer 42 or 0?
No, I haven’t gone mad. A client has spent a lot of time and energy recounting what he had done over the years. But it didn’t add up – literally. It didn’t explain why HMRC was accusing him of tax evasion. Nor did it explain why HMRC had issued him with Code of Practice 9 and invited him to join the Contractual Disclosure Facility (CDF)
Remuneration Trusts, EBTs etc. – tax avoidance or tax evasion?
The tax avoidance market has changed quite prodigiously in more recent times. Some of these schemes go back to the mid 1990’s and yet they may still be in dispute with HMRC. All of these tax avoidance schemes set out to reward key employees with little (tax) cost often by way of loans.
Furlough fraud – 1,000 Inspectors with £100m of funding
The Budget delivered on 3 March 2021 may be seen by some as uneventful. Some good news was the fact that the Furlough scheme has been extended again until the end of September 2021 – but with a potential sting in the tail
EBT refunds – the clock is ticking
Anyone who has used a tax avoidance scheme that falls under the heading of Disguised Remuneration between 6 April 1999 and 5 April 2016 may now be entitled to EBT refunds. HMRC are refunding PAYE and NIC to companies who have settled on the basis of Voluntary Restitution
Another little nudge letter – this time on ATED
HMRC are seeking Annual Tax on Enveloped Dwellings (ATED) charges from Non Natural Persons or typically offshore structures such as companies and trusts. ATED returns are required even if the taxpayer wishes to claim an exemption from the tax charge.
Do you have anything to disclose?
A simple question but if it is answered the wrong way, it can have a devastating effect. “Do you have anything to disclose?” is a question that is regularly asked by HM Revenue & Customs (HMRC) at the outset of an investigation
The “too difficult” category
Most people have consciously moved a particular task into the “too difficult” category. It is worrying how many times a “too difficult” task results in some form of UK tax irregularity. Examples can ultimately include the lack of an up to date Tax Return for an individual, partnership, limited liability partnership or company. But that is not how it all starts.