Don’t underestimate the ingenuity of HMRC
Two taxpayers in business together almost came a cropper with HMRC. HMRC raised a valid enquiry into their personal tax affairs issuing Code of Practice 9 (Cases of suspected serious fraud). All perfectly normal – in my world anyway! My clients had ignored my warning – don’t underestimate the ingenuity of HMRC
Your overseas assets, income and gains
This is the heading of the latest nudge letter from HMRC. Quite a snappy title and attracts most people’s attention to get them to read on further. But then how does HMRC know that you have any overseas assets? Or overseas income? Or overseas gains?
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.
Are you drowning under your tax investigation?
One of the symptoms of a tax investigation is the feeling that no matter what you do or say, you feel like you are drowning under the tax investigation. You need to treat the cause, not the symptom. You may need help to understand the cause but who do you turn to
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.
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 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.