By failing to prepare, you are preparing to fail
Some of you may recognise this as a quote from Benjamin Franklin. In my world it is a very true statement and I take time to explain its importance to others particularly in relation to failing to prepare for meetings with HMRC.
Who is in charge of your tax investigation or is it meandering out of control?
So many times I hear the answer back “HMRC is in charge of course!” Perhaps the question is more “Who should be in charge of your tax investigation”. Either way, the answer should be firstly the adviser is in charge and secondly the taxpayer. Otherwise your tax investigation can meander out of control.
GSOPs and CFDs – HMRC offer an opportunity to reach a Settlement
GSOPs and CFDs were mechanisms designed to reward Directors and key employees in return for achieving specific targets. The promoters argue that any payments out to an individual under a GSOP or CDF were subject to Capital Gains Tax (CGT).
The legacies of tax avoidance schemes
As the passage of time has shown, participating in tax avoidance schemes is not for the faint hearted. “I wish I had never done that” I hear regularly. Some taxpayers may only participated perhaps once or twice in whatever scheme it is but they have been in a nightmare ever since. And that goes for the advisers too!
Can HMRC ask for that?
Yes – is the simple answer! But perhaps the question really should have been “Are HMRC entitled to have access to that?” Anyone can ask for anything. But can HMRC have access to that information? The information may be sensitive. Asking is one thing – giving is another.
Signs that your tax investigation is about to get worse
Sadly I do not possess a magic wand. But I do know some of the tell tale signs that your tax investigation is about to get worse. These are some of the tell take signs.
6 questions that need to be answered about a tax investigation
A tax investigation is rarely welcome. Like other intrusions, they happen just at the wrong time. Its unlikely that anyone is prepared for the torrent of questions and the negative impact it can have on business and home life. So what questions should be answered at the outset?
Has your tax investigation gone past its sell-by date and gone stale?
We can all look forward to our favourite treat only to be disappointed that is has gone stale. Imagine how HMRC must feel when they are told a tax investigation has gone stale and the tax is no longer due.
Well, both can happen and both do happen.
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.
Loan Charge – what is a loan?
HMRC continue to pursue taxpayers who have received loans back from either in lieu of earnings of typically a contractor or back from an Employee Benefit Trust (EBT). The Loan Charge was effective from 30 September 2020 by which time HMRC were to be notified of all such loans and tax paid on them under the Disguised Remuneration rules. But for some, the issue has become what is a loan?