The CDF ican only be used if your client is prepared to admit to having committed tax fraud. Find out more about the CDF here.
There are two types of penalties – those that are fixed and those that are tax geared. But did you know your client’s behaviour will affect the level of tax geared penalties they have to pay?
Find out how a voluntary disclosure to HMRC can help you when dealing with unresolved tax issues and potentially reduce penalties.
HMRC are investigating UK taxpayers “connected” to Euro Pacific Bank on the basis that they are suspected of evading UK taxes and associated money laundering offences.
According to City AM, HMRC continue to pursue non compliant UK taxpayers by issuing nudge letters. As previously covered, HMRC’s use of nudge letters is a cost efficient way of recouping tax for the Exchequer without the need to launch a tax investigation into a taxpayer’s past tax compliance. But beware, there are risks for both taxpayer and adviser alike.
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.
Unfortunately, this nightmare scenario is not uncommon. No matter how much due diligence is undertaken, a fraud can be very sophisticated and may only surface after certain people have left. Often the fraud includes the Managing Director and other key employees, all of whom have now left.
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
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.
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)