Where’s the Trust gone?
In what sometimes I can only see as a bid to try and outmanoeuvre HMRC, a Trust can be moved around the world. Some might say that having travelled from Hong Kong in the East to Grand Cayman in the west that I have travelled a few miles on business. But why do Trusts seem to move a similar distance between say the Channel Islands, the Mediterranean and the Caribbean
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 issue latest round of “nudge letters”
Periodically HMRC issue “nudge letters” to taxpayers as a means of persuading them to reconsider their past UK tax compliance. The content of such letters is based on information already received by HMRC form any of its numerous sources including under the Common Reporting Standard (CRS).
What HMRC giveth in 2020, will HMRC taketh away in 2021?
As part of the UK government’s support to the economy in 2020 in response to the pandemic, exceptionally HMRC have been making payments to taxpayers rather than collecting tax payments from taxpayers. Clearly, this cannot continue indefinitely.