EdgeNews l et t er I s s ue4 J ul yupdat e2015
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Edi t or i al I tha snotbeent ool ongs i nc et hel a s tnews l et t er ma i nl yduet ot heel ec t i ona ndt wobudget s . Howev er , al otha sha ppenedt hi squa r t eri nt he t a xa ndpol i t i c a l wor l d.MrCa mer onga i nedc ont r ol a ndha sas ma l l ma j or i t yi nt heCommons : t wel v eMPs .T hi sma yr es ul ti nat opi c a l y ea r gi v enL a boura ndt heL i ber a l Democ r a t sc oul d c ol l ec t i v el ybea tt heCons er v a t i v es .Appa r ent l y , i twi l l bedependentont hepa r t ywhi psdoi ng t hei rwor k .
- Budgetupda t e - Thec hangi ngenvi r onmentofHMRC - HMRCt ar get si nt er net t r ader s - Conf es s i onsofawi ndow c l eaner Ant onL ane , Managi ngP ar t ne r
Whi l s twr i t i nga boutwhi psi ts e e mse nt i r e l ya ppr opr i a t et ot ha nkL or dS e we l f or pr ov i di ngt hepubl i cwi t hs omemuc hne e de dhumourdur i ngt hes umme r mont hsa nd, i npa r t i c ul a r , a f t e rt hebudge t s .I s pe c ul a t et ha tt he r ema ybeac unni ngpl oyt or e v e r s et heonc es c a nda l ousa c t i v i t i e sofCons e r v a t i v eMPsa ndt ur n ona l l e ge dl yov e r we i ght , c ok es nor t i ng, br awe a r i ng, de r oga t or ypr os t i t ut eus i ng L a bourL or ds .Atl e a s tal i t t l emode s t ywa ss hownbyus i ngar ol l e dup v epound not e .Qui t er i ght l yot he rpol i t i c a l pa r t i e swoul dha v eus e da f t yt ode mons t r a t e t he i rc a pi t a l i s tpowe r wi e l di nge go. Al t houghi ti sdi ffic ul tt ot e l l whi c hpa r t i e sa r e ge nui ne l ys oc i a l i s t , c a pi t a l i s tori nbe t we e ngi v e nt he i rl e a de r s( pa s ta ndpr e s e nt ) a l l a ppe a rt obemode r a t e l ybe t t e rofft ha nt hea v e r a gepe r s on. T hea v e r a gepe r s onwi l l howe v e rs hor t l ybebe t t e roffbyac oupl eofgr a nday e a r duet ot heS umme rBudge t , whi c hwes umma r i s ei nt hi sne ws l e t t e r .Al s o, t he we a l t hya r el i k e l yt obewor s eoffgi v e nt ha tt he ya r egoi ngt obet het a r ge tof HMRCs c r ut i nya ndpr os e c ut i on.F orus , t hebi gge s the a dl i newhi c hr e s ona t e st he “ NE W HMRC” ( i t ’ sabi tl i k ene wL a bourbutc ol l e c t smor emone yt ha ni ts pe nds ) i s t ha tpr os e c ut i onsa r egoi ngt ot r i pl e .Wel a s tr e por t e dadoubl er ol l ov e ra ndnow i t ’ sat r i pl er ol l ov e r , a l t houghge t t i ngc a ughti snotal ot t e r ya ny mor e .Dor e a d t hea r t i c l e si nt hene ws l e t t e ra ndonourwe bs i t et o ndoutmor e . Asa l wa y s , wewe l c omey ourt hought s , s ugge s t i onsa ndc omme nt sonourne ws l e t t e r .
- Openi ngawi ndowwi der andwi der( HMRCenqui r i es ) - Edgenews
Don’ tf or gett of ol l owus ons oc i al medi a: @Edge T ax edget ax l l p Edge T ax L L P +Edget ax
Vi s i tourwebs i t ef ormor e ar t i c l esbyc l i c ki ngt hel i nkher e: www. edget ax . c om orbys c anni ngt hebar c odebel ow:
Ne ws l e t t e r SummerBudgetUpdat e
I ndi vi dual sr ej oi c e( apar tf r om nondoms ) T heper s ona l a l l owa nc ewi l l i nc r ea s ef r om £10, 600i n2015/ 16t o £11, 000i n2016/ 17a nd£11, 200i n2017/ 18. T hei nt ent i oni st oi nc r ea s et heper s ona l a l l owa nc et o£12, 500byt heendoft hec ur r entPa r l i a ment . T hei nc r ea s ei sunl i k el yt oha v eas i gnic a nt i mpa c tonmos thous ehol dsi nourv i ew! T he40%hi gherr a t et hr es hol dwi l l r i s ef r om £42, 385i n2015/ 16 t o£43, 000i n2016/ 17a nd£43, 600i n2017/ 18. T heNI Csupper ea r ni ngl i mi twi l l r ema i na l i gnedwi t ht hehi gherr a t et hr es hol d. T hei nt ent i oni st oi nc r ea s et hehi gherr a t et hr es hol dt o£50, 000 byt heendoft hec ur r entPa r l i a ment . T heDi v i dendT a xCr edi twi l l bea bol i s hedf r om Apr i l 2016. Anew Di v i dendT a xAl l owa nc eof£5, 000wi l l bei nt r oduc edf r om Apr i l 2016. T henewr a t esoft a xondi v i dendi nc omea bov et hea l l owa nc ewi l l be7. 5%f orba s i cr a t et a x pa y er s , 32. 5%f orhi gherr a t e t a x pa y er sa nd38. 1%f ora ddi t i ona l r a t et a x pa y er s .
Mor epai nmor egai n: Ant i avoi danc e
T her ul esonnondomswi l l c ha ngef r om 6Apr i l 2017:
Pur s ua ntt oac ons ul t a t i on, ne wpe na l t i e sf ort a x pa y e r sunde r t a k i nga r r a nge me nt swhi c hf a l l f oul of t heGe ne r a l Ant i Abus e Rul e( “ GAAR” ) wi l l bei nt r oduc e d.
-Nondom i ndi v i dua l swhoha v ebeenr es i denti nt heUKf or mor et ha n15oft hel a s t20t a xy ea r swi l l bec omedeemedUK domi c i l edf ora l l t a xpur pos esa ndwi l l pa yt a xont hei rwor l d wi dei nc omea ndga i ns , a swel l onwor l dwi dea s s et sondea t h;
T hegov e r nme nta nnounc e da ni nv e s t me ntof £800m i nt o HMRCwi t hav i e wt ot r i pl i ngt henumbe rof c r i mi na l i nv e s t i ga t i onst ha tHMRCunde r t a k ea ndf oc us i ngonwe a l t hyi ndi v i dua l sa ndc or por a t e s . L e gi s l a t i onwi l l bea me nde dr e l a t i ngt ot r a di ngs t oc ka ndi nt a ngi bl ea s s e t s , t oma k es ur et ha tdi s pos a l sma deot he rt ha ni nt he nor ma l c our s eof bus i ne s sa r ebr oughti nt oa c c ountf ort a xpur pos e sa tf ul l ope nma r k e tv a l ue . Addi t i ona l r e s our c e swi l l bei nv e s t e di nl a r gebus i ne s sc ompl i a nc ewor kt ot a c k l ee v a s i on, a v oi da nc ea nda ggr e s s i v et a x pl a nni ngbyl a r gebus i ne s s . Ac ons ul t a t i onwi l l bepubl i s he d HMRCwi l l di s c us swi t hbus i ne s s e sonhowt oi mpr ov et hee f f e c t i v e ne s sof t hee x i s t i ngI R35l e gi s l a t i on. E dgeT a xc ont i nuet oc l os e l ymoni t orHMRC’ spowe r sa ndc a mpa i gns , t hec ha nge si na nt i a v oi da nc el e gi s l a t i ona ndhowi ndi v i dua l sa ndbus i ne s s e ss houl dma na get he i rr i s k sa nda ppr oa c ht a xpl a nni ng. T of ol l owouri ns i ght s : Fol l owuson T wi t t er : @E dge T a x @Ant onL a neE dge @J er omeL a ne F a c ebook E dge T a x L L P
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-I ndi v i dua l swhoa r eUKdomi c i l eda tbi r t hbutt henl ea v et he UKa nda c qui r eadomi c i l eout s i det heUKwi l l bet a x eda sUK domi c i l edi ft heys ubs equent l ybec omeUKr es i denta ga i na t a nypoi nti nt hef ut ur e . -F r om 6Apr i l 2017, i nher i t a nc et a x( “ I HT” ) wi l l bec ha r gea bl e a si ft hei ndi v i dua l ort r us townedenv el opedpr oper t y di r ec t l y .
Mypr oper t yempi r e I ndi v i dua l l a ndl or dsofr es i dent i a l pr oper t ywi l l ha v e na nc ec os t s r es t r i c t edt ot heba s i cr a t eoft a xwhenc a l c ul a t i ngt hei rt a x a bl e i nc ome . T her es t r i c t i onwi l l bepha s edi nov erf oury ea r s , s t a r t i ng f r om Apr i l 2017. T hi sc ha ngei nt r ea t mentma yi ns pi r el owergea r i ngorowni ngpr oper t ypor t f ol i ost hr oughc ompa ni esa l t hough t hi sneedst obec ons i der edv er yc a r ef ul l y ! F r om Apr i l 2016t heWea ra ndT ea rAl l owa nc ewi l l ber epl a c ed wi t hanewr el i eft ha ta l l owsa l l r es i dent i a l l a ndl or dst odeduc t t hea c t ua l c os t sofr epl a c i ngf ur ni s hi ngs . Adet a i l edc ons ul t a t i on i se x pec t edi nt hes ummer . T hel ev el ofr ent a r oom r el i efwi l l bei nc r ea s edf r om Apr i l 2016 f r om £4, 250t o£7, 500.
edget a x l l p Orj oi nourt a xi nv es t i ga t i onsa ndr i s kma na gemen gr oupbyc l i c k i ngher e .
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Ne ws l e t t e r SummerBudgetUpdat e Ret i r ementi sdi ffic ul t F r om 6Apr i l 2016: -T heL i f e t i meAl l owa nc ef orpe ns i onsc ont r i but i onswi l l r e duc et o£1m; -T hea nnua l a l l owa nc ebe net sof pe ns i onst a xr e l i e f wi l l be t a pe r e df ort a x pa y e r se a r ni nga bov e£150, 000. Ac ons ul t a t i onont her e f or m of pe ns i onst a xr e l i e f ha sbe e n r e l e a s e d.
Di eHappy Ne wme a s ur e sde s i gne dt or e mov et hema j or i t yof f a mi l y home sf r om t heI nhe r i t a nc eT a x( ” I HT” ) ne t , whe r et her e s i de nc ei sl e f tt oc hi l dr e norgr a ndc hi l dr e nonde a t h, wi l l be i nt r oduc e d. Ana ddi t i ona l ni l r a t eba nd( NRB) wi l l bei nt r oduc e d f r om Apr i l 2017t ha tc a nonl ybeus e di nc onne c t i onwi t ht he r e s i de nc e . T hi sa ddi t i ona l NRBwi l l i ni t i a l l ybea tar a t eof £100, 000pe rpe r s oni n2017/ 18i nc r e a s i ngby£25, 000e a c h y e a rt o£175, 000f r om 2020/ 21. Att hi spoi ntahus ba nda nd wi f e/c i v i l pa r t ne r swi l l e a c hha v eat ot a l NRBof £500, 000whe n c ombi ni ngt hi sne wa mountwi t ht hee x i s t i ngI HTni l r a t eba nd of £325, 000. T hea ddi t i ona l e l e me ntof t heNRBwi l l ber e duc e d whe r et hene tv a l ueof t hee s t a t ei sov e r£2m a ndi sr e duc e dt o ni l f ore s t a t e swor t hmor et ha n£2. 35m. I ti sgoodt ok nowt ha tourGov e r nme nti st r y i ngt oma k eI HT l e s sof abur de nf ort her e a s ona bl ya fflue nt , a l t hought he me a s ur e sa r eunl i k e l yt ode t e re s t a t epl a nni ng; i ti sunl i k e l y a ny onewa nt st ogi v ea wa y40%of a ny t hi ng! I HTi ss t i l l at a x pa i dbyt hee s t a t eof pe opl ewhodi s l i k et he i rf r i e ndsa ndf a mi l y mor et ha nt heGov e r nme nt !
I t ’ snotqui t eaJ aguar … Ve hi c l eE x c i s eDut y( “ VE D” ) -Ane wVE Dba ndi ngs y s t e mf or c a r sr e gi s t e r e donora f t e r1Apr i l 2017wi l l bei nt r oduc e d.T he r s ty e a rr a t e swi l l c ont i nuet obes e ta c c or di ngt oCO2e mi s s i onsa l t houghonl yZe r oe mi s s i onc a r swi l l bee x e mptf r om pa y i ng.
T ol i ght ent hi sbur den, aMOTwi l l notber equi r edunt i l t hec a ri s f oury ea r sol d, r a t hert ha nt hr ee . Al l c a r st ha twer er s tr egi s t er edbef or et henews y s t em c omes i nt oeffec t , r ema i nont hee x i s t i ngVE Ds c a l e .
Oneoft hel owes tCTr at esi nEur ope T hec or por a t i ont a x( “ CT” ) r a t ewi l l ber educ edf r om 20%t o19% i n2017a nd18%i n2020. F ora c c ount i ngper i odss t a r t i ngonora f t er1Apr i l 2017, new pa y mentda t eswi l l bei nt r oduc edf orc ompa ni esa ndgr oups wi t ha nnua l t a x a bl epr ot sof£20m ormor e . Qua r t er l yi ns t a l ment si nt het hi r d, s i x t h, ni nt ha ndt wel f t hmont hsoft hea c c ount i ngper i odwi l l ber equi r ed. T heper ma nentl ev el oft heAI Awi l l i nc r ea s et o£200, 000f ora l l qua l i f y i ngi nv es t menti npl a nta ndma c hi ner yma deonora f t er 1J a nua r y2016. Rel i efwi l l ber es t r i c t edf ort hec os tofgoodwi l l i nr es pec tofa l l a c qui s i t i onsa nddi s pos a l sonora f t er8J ul y2015. F r om Budgetda yt hea bi l i t yf orc ompa ni est ous eUKl os s esa nd r el i ef sa ga i ns tac ont r ol l edf or ei gnc ompa nyc ha r gewi l l ber emov ed. L egi s l a t i onwi l l r emov et her es i denc er equi r ement sf orl i nkc ompa ni esf orc ons or t i um r el i ef( a ppl i est oa c c ount i ngper i odss t a r t i ngonora f t er10Dec2014) .
Empl oyer ’ sr equi r ed Anewl ev yonl a r geUKempl oy er swi l l bei nt r oduc edt oi nc r ea s e t henumberofnewa ppr ent i c es hi ps . T heNI CE mpl oy mentAl l owa nc ewi l l bei nc r ea s ed, f r om Apr i l 2016, f r om £2, 000t o£3, 000.
Eat , s l eep, r es ear c h, devel opandr epeat F r om 1Augus t2015, uni v er s i t i esa ndc ha r i t i esa r euna bl et o c l a i mt heRes ea r c h&Dev el opmentE x pendi t ur eCr edi tt a x c r edi t .
Af t e rt he r s ty e a r , aa tr a t eof£140ay e a ra ppl i e s( £0f orZe r o e mi s s i on) .Ca r swi t hal i s tpr i c ea bov e£40, 000wi l l a t t r a c ta s uppl e me ntof£310i f t he ya r el i a bl et ot hes t a nda r dc ha r ge f ort he r s tv ey e a r s .
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Ne ws l e t t e r TheChangi ngEnvi r onment ofHMRC I s pe nta r ounds i xhour swi t hQue e n’ sCouns e l y e s t e r da yde ba t i ngv a r i oust e c hni c a l i s s ue sa ndof c our s ea ddr e s s i ngt hec ur r e ntc ha ngei ne nv i r onme nt .I ha v et oi nf or ma l l t ha tt hei ns t r uc t e dQC( ma i l mef orde t a i l s ) i sa ne x c e l l e ntQue e n’ sCouns e l a nda ddr e s s e st a xr i s k sope nl ya ndwi t hc ons i de r a t i ont ot he pr a c t i c a l i t i e sof de f e ndi ngac l i e nt ’ spos i t i on.Howe v e r , i ti sr e v e a l i ngt ha twea ut oma t i c a l l yc ons i de rac l i e nt ’ sde f e nc ea l mos t a si f wha t e v e rpl a nni ngi sunde r t a k e nwi l l bec ha l l e nge d.T hi s i showe v e rnott hec a s e .Obv i ous l ys omepl a nni ngwi l l notbe c ha l l e nge da l t houghs omea dv i s e r sa r ec onc e r ne dt ha tHMRC a r er i di c ul ous l yc ha l l e ngi ngpr e v i ous l ya c c e pt a bl epl a nni ng. HMRCa r eons t e r oi ds( ora mphe t a mi ne s ) …. T hedi s c us s i onwi t hCouns e l c e nt e r e dl a r ge l yondua l i t yof pur pos ea ndobt a i ni ngade duc t i ona ga i ns tpr ot sc ha r ge a bl et o t a x .I wa si nt e c hni c a l he a v e na l t hought hedi s c us s i onhi ghl i ght e dane wa ppr oa c hbe i ngt a k e nbyt hec our t s , whi c hwi l l f or m at opi cf orourne x tne ws l e t t e ra ndwi l l beof s i gnic a nti nt e r e s tt opr of e s s i ona l spr e pa r i ngt a xa c c ount s . T hec ha ngei ne nv i r onme nti spr oba bl ybe s ti l l us t r a t e dbyt he a ma l ga ma t i onof t woof HMRC’ si nv e s t i ga t i onst e a ms .Pr e v i ous a r t i c l e sha v ehi ghl i ght e dhowc r i mi na l i nv e s t i ga t or sa r enow a c c e s s i bl ebyi nv e s t i ga t i ont e a msf r om t heout s e tof a ni nv e s t i ga t i on.Howe v e r , a ny onewor k i ngi nabi gor ga ni z a t i onwi l l k nowt ha tt he r ei sadi ffe r e nc ebe t we e na c c e s s i bl ea ndwor k i ng t oge t he r : a nope npl a noffic edoe s n’ tme a nba r r i e r sa r ebr ok e n down. Me r gi ngade pa r t me nt , whi c hwoul di nv ol v et y i ngi n pe r f or ma nc ec r i t e r i awoul di nc e nt i v i z et hede s i r et owor kt oge t he r . T hemov ebyHMRCi st ot a r ge ts e r i oust a xc r i memor ee ffe c t i v e l y .S pe c i a l i s ti nv e s t i ga t i onsa ndc r i mi na l i nv e s t i ga t i onswi l l me r gea l l owi ngHMRCt obe t t e rs ha r ee x pe r t i s ea ndk nowl e dge a nda ppr oa c hi nv e s t i ga t i onswi t hav i e wt oc r i mi na l pr os e c ut i onf r om t heout s e t .Re a l l y , a r et he r egoi ngt obemor epr os e c ut i ons ?Oura r t i c l e“ T hef ut ur eof HMRCpr os e c ut i ons ” i swor t h ar e a da l ongs i det hi sone . T hene wsof t heme r ge rc a mea he a dof t he r s ta ndr a t he re x c i t i ngCons e r v a t i v ebudge t , whi c honl ygoe st oe nf or c et he c ha ngei nourt a xe nv i r onme nt . T hepus hf orgr e a t e rdi s c l os ur e t oHMRCc ont i nue s . I n2017HMRCwi l l be gi nt or e c e i v ei nf or ma t i ona boutoffs hor e a c c ount s , c r e a t or sof offs hor es t r uc t ur e sa ndbe nec i a l owne r s a ndwi l l a tt hes a met i mes ha r ei nf or ma t i onwi t hot he rt a xa ut hor i t i e s . S oe x c i t i nga ndt heme r ef a c ts houl dc onc e r na ny one wi t ht hi ngsoffs hor e . Notne c e s s a r i l yf orunpa i dt a x e sbutf or t hei nc onv e ni e nc eof pe ndi nge nqui r i e s( a ndpos s i bl yunpa i d t a x e s ) .
F i na nc i a l i nt er medi a r i es( i nc l udi ngt a xa dv i s er s ) wi l l ber equi r ed t ot a k eamor ea c t i v er ol ei nt hea ppl i c a t i onoft heCommonRepor t i ngS t a nda r da ndwi l l ber equi r edt ot el l t hei rc l i ent sa bout t hei rr epor t i ngobl i ga t i onsundert her egi me . HMRCwi l l r ec ei v emor ef undst ous et hi si nf or ma t i ont ot a c k l e t a xa v oi da nc ea ndpur s uec r i mi na l i nv es t i ga t i onsofwea l t hyt a x pa y er sa ndas pec i a l i s tr es our c ewi l l bec r ea t edt of oc uson nonc ompl i a nc ebyt r us t s , pens i ons c hemesa ndnondomi c i l ed i ndi v i dua l s . T her ea ders houl dr emembert ha tt henews t r i c t c r i mi na l offenc ei soni t swa y( a ga i ns eet hea r t i c l eonT heF ut ur e ofHMRCPr os ec ut i ons ) . T her ewi l l beanews et t l ementoppor t uni t y .At i mel i mi t eddi s c l os ur ef a c i l i t ywi l l s t a r ti nea r l y2016underwhi c hs omeone ma yc or r ec tt hei rt a xa ffa i r sbef or ei nf or ma t i oni ss ha r edunder t heCommonRepor t i ngS t a nda r d.E x i s t i ngr out esf orr es ol v i ng hi s t or i c a l i s s uesi nt a x pa y er ’ sa ffa i r s , t heL i ec ht ens t ei nDi s c l os ur e F a c i l i t ya ndt heCr ownDependenc i esDi s c l os ur eF a c i l i t ya r e bei ngbr oughtt oa nendt hi sy ea r . Ne x ty ea r ’ sl i mi t ednewdi s c l os ur ef a c i l i t y( whi c hwi l l bel es sgener oust ha npr ev i ousdi s c l os ur ef a c i l i t i es ) i sl i k el yt obet heonl yr out eopena ndt her ef or ei t i smor epr ev a l entt ha tpeopl ec hec kt hei rt a xa ffa i r snow. T heGov er nmenta r ea l s ol a unc hi ngac ons ul t a t i onpr oc es si nr es pec tofnewpena l t i esf orbr ea c hoft heGener a l Ant i Abus e Rul e , whi c ht a r get sa r t ic i a l t a xa v oi da nc es c hemes .T hei ndi c a t i oni st ha tt hepena l t ywi l l bepr opor t i ona t et ot hea mountof t a xr ec ov er eda ndt a x pa y er swhor epea t edl yus et a xa v oi da nc e s c hemesc a ughtbyt heGener a l Ant i Abus eRul ewi l l be“ na med a nds ha med” . T hec ha nc esofbei ngc a ughta r ei nc r ea s i nga ndi ti sl i k el yt ha t i nv es t i ga t i onswi l l bec omemor ec ommonf orwea l t hyi ndi v i dua l s .Nowi st het i met or ev i ewpl a nni nga nds t r uc t ur es( es pec i a l l yoffs hor e) t oma k es ur et heywi l l wi t hs t a nds c r ut i ny . I fy ouwoul dl i k ear ev i ewofy ourpl a nni ngorha v ea nyc onc er ns a ndneeda dv i c e , pl ea s edonothes i t a t et oc ont a c tus .
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Ne ws l e t t e r Sel l i ngonl i nei snotac r i me unl es s . . . On25t hJ ul y2015t heBBCr e por t e dt ha tHMRCi st oe x t e ndi t s powe r st oa l l owt he mt oga t he ri nf or ma t i ona ndt a r ge ti nt e r ne t t r a de r s .T hene wsf ol l owsac ons ul t a t i ondoc ume ntont hee x t e ns i onof da t aga t he r i ngpowe r spubl i s he dbyHMRCon22J ul y 2015. HMRC’ sc ont i nui nge ffor t st oe x t e ndi t spowe r si snol onge ras ur pr i s e . Ve r ys oon, t heI ns pe c t ory oua r eme e t i ngwi t hwi l l k nowt he c ol ourof t heunde r we a ry oua r ewe a r i ngt ha tda y ! T hepr opos a l f ol l owsas e r i e sof e x t e ns i v ea me ndme nt st opowe r s whi c ha l l owHMRCt os e r v enot i c eont hi r dpa r t i e st opr ov i dei nf or ma t i on.T hepur pos eof t hi si st oa s s i s twi t ht hee ffic i e nta nde f f e c t i v edi s c ha r geof HMRC' st a xf unc t i onsa nde na bl eHMRCt o s i mpl ymoni t ort a x pa y e r s . T hei nf or ma t i oni sus e dt oma k ec ompa r i s onsa ga i ns tt ha ts ubmi t t e dont a xr e t ur nsa ndot he rr e c or ds a l r e a dya v a i l a bl et oHMRC. S e c t i on228of t heF i na nc eAc t2013pr ov i de dne wpowe r st oc ol l e c tda t af r om me r c ha nta c qui r e r s : bus i ne s s e st ha tpr oc e s sc r e di t a ndde bi tc a r dt r a ns a c t i ons . T heda t ac a nbeut i l i s e dbyHMRCt o i de nt i f yt r a de r st ha ta r enotde c l a r i ngora r eunde rde c l a r i ngt he i r i nc ome . Howe v e r , t hei nt e r ne tha sma nyf or msof pa y me nt , f ore x a mpl e , di gi t a l wa l l e t st ha ta r enotc ov e r e dbyt hee x i s t i ngl e gi s l a t i on. T hei nt e nt i oni st ol e gi s l a t et oe x t e nda c c e s st ot wos i mi l a r s or t sof da t ahol de r s . T hec ha nge swi l l a ppl yt oda t ahe l dby : -E l e c t r oni cpa y me ntpr ov i de r s : bus i ne s s e st ha tpe r f or ma s i mi l a rf unc t i ont ome r c ha nta c qui r e r sbyha ndl i ngmone t a r y t r a ns a c t i ons ; a nd -Bus i ne s si nt e r me di a r i e s : bus i ne s s e st ha ta l l owc us t ome r st o ma k eor de r s , pur c ha s e sorr e s e r v a t i ons , r e l a t i ngt ogoods , s e r v i c e sordi gi t a l c ont e nt . I nt e r me di a r i e st ha ta r el i k e l yt ober e c i pi e nt sof not i c e swi l l i nc l ude : -Adv e r t i s i ngboa r dsorpl a t f or ms ; -Apps t or e s ; a nd -Book i nga ndRe s e r v a t i onI nt e r me di a r i e s . T hei nf or ma t i onwi l l beha ndl e dbyHMRC’ sRi s ka ndI nt e l l i ge nc e S e r v i c e( “ RI S ” ) .RI Si sr e s pons i bl ef or : -Col l a t i ngi nf or ma t i on; -I de nt i f y i ngt hos eope r a t i ngi nt hehi dde ne c onomy ; -Re c e i v i nga nde x c ha ngi ngi nf or ma t i onwi t hot he r Gov e r nme ntde pa r t me nt s ; a nd -Re s e a r c hi nga ndi de nt i f y i ngc a mpa i gna ndt a s k f or c et a r ge t s . RI Sha v ea c c e s st oal otmor ei nf or ma t i ona ndt he s ene wpowe r s wi l l s i mpl ya ddmor eda t awi t hwhi c ht oc ompa r ewi t ht ha ta l r e a dyhe l d.
RI Si sdi r ec t l yr es pons i bl ef orConnec t( HMRC’ sf r a uddet ec t i on s y s t em) .I ti sa nel ec t r oni ca na l y t i c a l t ool bui l tbyBAEs y s t ems ( a l s or es pons i bl ef orbui l di ngs of t wa r es y s t emst oc omba tc y ber c r i me) .Connec ti shel dt ounc ov erhi ddenr el a t i ons hi psbet weenpeopl e , or ga ni s a t i onsa ndda t a .T hes our c esofda t ai nc l udet ha tf r om: -Ot herGov er nmentdepa r t ment s ; -Compa ni esHous e; -L a ndRegi s t r y ; -Bor derAgenc y ; -F or ei gnt a xor ga ni s a t i onsv i at r ea t i esa nda r r a ngement s( s oon t obet ha tr ec ei v edundera ut oma t i ce x c ha ngea gr eement s ) ; -T a x( i nc ome , c or por a t e , P AYEa ndVAT) r et ur ns ; -Ba nka c c ount s ; -Cr edi tr ef er enc ea genc i es ; -Onl i nes oc i a l net wor k i ng; a nd -Ot hert hi r dpa r t ys our c es( t hos es ubj ec tt oi nf or ma t i onnot i c e r eques t s ) . Wha tbec omesi mmedi a t el ya ppa r enti st ha tt hi si nf or ma t i on, i f a na l y s edc or r ec t l y , wi l l a l l owHMRCt oi dent i f yt hos et r adi ngon t hei nt er netwi t hav i ewt oapr ot . HMR M Cc ont i nuest oev ol v e , dev el opont hei rf a nc yt ool sa ndwi l l us et hem t os el ec ta ndwor kenqui r i esa swel l a sdet er mi net he c ol ourofy ourpa nt s .Rec entc omment sa r et ha tHMRCs i mpl y c a nnotc opewi t ht hel ev el ofi nf or ma t i ont heyha v ea nd numberoft a x pa y er st ha ta ppea rt obeunderdec l a r i ngi nc ome . T hi ss houl dn’ tgi v ea ny onec omf or tgi v ent ha twher et her ei st a x ev a s i on, HMRCma ygoba c kt went yy ea r s .I ti sl i k el yt ha twi t hi n af ewy ea r s , HMRCwi l l bema na gi ngt hev ol ume .T hebes t c our s eofa c t i onf ors omeonewhoha sbeenoper a t i ngi nt he hi ddenec onomywi l l bet oma k eat i mel yv ol unt a r ydi s c l os ur e , pr ef er a bl ybef or et heyr ec ei v eal et t er . HMRCa nnounc edpl a nst oe x t endi t sda t a ga t her i ngpower st o t a r gets us pec t edt a xev a der si nt he‘ a ppec onomy’ . T hepr opos a l sa nnounc edi n‘ t a c k l i ngt hehi ddenec onomy : E x t ens i onofda t a ga t her i ngpower s ’ woul dgi v eHMRCt hepowert oa c c es sda t a f r om t hema i na pps t or es , s uc ha sAppl e , Ama z ona ndGoogl e . HMRCbel i ev est ha ta pps t or es , a swel l a sonl i nepl a t f or msa nd book i ngs y s t emsa r ea bl et opr ov i det hem i nf or ma t i onononl i ne bus i nes s eswhi c hma ynotha v edec l a r edt hef ul l v a l ueoft hei r s a l esorma ynotev enber egi s t er edwi t hHMRC. T hepr opos a l sc oul da l l owHMRCea s i era c c es st oda t af r om av a r i et yofonl i nema r k et pl a c esi nc l udi ngGumt r ee , Cr a i gs l i s ta nd Ai r bnb. HMRCha sa l r ea dye x t endedda t a ga t her i ngpower st o onl i nepur c ha s emet hodss uc ha s“ di gi t a l wa l l et s ” ; a ni nc r ea s i ngl ypopul a rpa y mentmodel a l l owi ngc us t omer st oma k eonl i ne t r a ns a c t i ons . [ UHYHa c k er Y oung] T henewpower swi l l gi v et het a x ma na c c es st oi nf or ma t i onf r om Pa y pa l , t heonl i nepa y mentc ompa nyf or mer l yownedbyeBa y , s ma r t phonea pps t or esr unbyAppl ea ndGoogl e , hol i da yc ompa r i s onwebs i t esa ndahos tofot heronl i ner et a i l er s . 5
Ne ws l e t t e r Conf es s i onsofawi ndow c l eaner I tc oul da c t ua l l ybeac onf e s s i onof a ne l e c t r i c i a n, pl umbe r , pr ope r t yt y c oonorv i r t ua l l ya ny onef ort ha tma t t e r !Al t houghy ouma y not et ha tt he r ei snota“ Pol i t i c i a n’ sT a xCa mpa i gn” de s pi t et hewe l l doc ume nt e da bus eof e x pe ns ec l a i ms , whi c hs houl ds ur e l yma k e t he m at a r ge tgr oup.Wea wa i tt heE mpl oy e eBe net T r us tS e t t l e me ntOppor t uni t y( “ E BT S O” ) a ndCont r a c t orL oa nS e t t l e me nt Oppor t uni t y( “ CL S O” )gur e swi t hi nt e r e s t .
Howev er , wher ef r a udha sbeenc ommi t t ed, HMRCma ygoba c k upt o20y ea r sa go. Wher et her eha sbeenas er i ousf r a ud, t heper s onorper s ons ma ybes ubj ec tt oac r i mi na l i nv es t i ga t i on.I nmos ts er i ous c a s es , c odeofpr a c t i c e9( “ COP9” ) i si s s uedt oenc our a geac ompl et edi s c l os ur eoft a xi r r egul a r i t i es .Al t hough, wher eCOP9i s i s s ueda ndama t er i a l f a c tomi t t ed, HMRCa r el i k el yt oes c a l a t e t hepos i t i ont oac r i mi na l i nv es t i ga t i onl ea di ngt opr os ec ut i on. Thec or r ec tamountoft ax
Gi v e ns oma nyha v ee nt e r e dt hes e t t l e me ntoppor t uni t i e s , be e n t hes ubj e c tof a ne nqui r y , r e c e i v e dal e t t e rs ugge s t i ngt he ye nt e ra s e t t l e me ntoppor t uni t y , orr e c e i v e da na c c e l e r a t e dpa y me nt not i c e( “ APN” ) , i ti sunl i k e l yt ha tar e a s ona bl epe r s onof s ound mi ndwoul da c t ua l l ybe l i e v eHMRCwi l l ne v e r ndouta bout unpa i dt a xorunde c l a r e da s s e t s .
Pr es ent i ngadi s c l os ur et oHMRCa l l owst het a xpos i t i ont obe s etouti naf a v or a bl ema nner .I tma ybet ha tt hel a wi napa r t i c ul a ra r eai sunc l ea ra ndpr es ent i ngt hel owert a xpos i t i onpr ov i desas t a r t i ngpoi ntf ornegot i a t i on.T her epr es ent a t i onsneed t ober ea l i s t i ca nde x pec t a t i ons houl dbet onegot i a t eac ompr omi s e .
T a xa ut hor i t i e sa r oundt hewor l da r ehe l pi nge a c hot he r .HMRC ha v et he i ra wa r dwi nni ngs of t wa r e , “ Conne c t ” whi c hr e c e i v e si nf or ma t i onf r om gov e r nme ntbodi e s , t hi r dpa r t i e sa nda c r os st hewe b. Ri s ka ndI nt e l l i ge nc eS e r v i c e( “ RI S ” ) l ooka f t e rConne c ta ndt he n i de nt i f yc a mpa i gnst or una ndwhos houl dbet hes ubj e c tof a n e nqui r ye t c . be f or es e ndi ngt hi sdownt ot her e s pons i bl et e a ms . Asr e por t e dpr e v i ous l y , t he s et e a msi nc l udec r i mi na l i nv e s t i ga t or s , l a wy e r sa ndot he rs pe c i a l i s t s .
S omes et t l ementoppor t uni t i es , s uc ha st heE BT S Os etoutt he pr ec i s et a xt r ea t mentt ha twoul dbea dopt edundert ha toppor t uni t ya ndHMRCha v edec l i nednegot i a t eds et t l ement si ns t ea d s ugges t i ngt heywoul dpr ef ert ol i t i ga t e . T hes t a nc ei sl i k el yt o bes i mi l a rwher ef ut ur eoppor t uni t i esa r el a unc hedf ors c hema t i cpl a nni ng.I tma yt her ef or ebemor ea dv a nt a geoust oc ons i der di s c l os i nga hea doft hel a unc hofa noppor t uni t y , a l t hough s ome ndi tdi ffic ul tt obel i ev et ha tHMRCwi l l c a t c hup.
Weoffe rourne t wor kof a dv i s e r sanoobl i ga t i one nqui r yr e v i e w a ndf e e dba c ks e r v i c e .
Payi ngt het ax
Shoul ds omeonedi s c l os e? Noonewa nt st oa s kHMRCt ol ooka tt he i rt a xa ffa i r s .Howe v e r , a v ol unt a r ydi s c l os ur eof at a xi r r e gul a r i t yc a nha v eal otof pos i t i v e out c ome s : -Ac a s ec oul dbepr e s e nt e dt oHMRCi ns t e a dof t he m i nv e s t i ga t i ngont he i rowna c c ount ; -T hepe r s ondi s c l os i ngwi l l obt a i npe a c eof mi ndt ha ti ti sbe i ng de a l twi t hr a t he rt ha nl ook i ngov e rt he i rs houl dwonde r i ng whe nHMRCwi l l k noc ka tt he i rdoor ; -I f ma na ge dc a r e f ul l y , t hepos s i bi l i t yof c r i mi na l pr os e c ut i onwi l l bea l l e v i a t e d; -T hepe r s ondi s c l os i ngs houl da v oi dbe i ngna me da nds ha me d byHMRC; -I ts houl dbepos s i bl et os i gnic a nt l yr e duc epe na l t i e s ; a nd -Whe r eapa y me ntpl a ni sr e qui r e d, ne got i a t i onsa r el i k e l yt obe e a s i e r . Cons equenc esoft axoffenc es Whe r ei ti si de nt ie dt ha tt a xs houl dha v ebe e npa i da ndi tha s not , i twi l l ne e dt obepa i da l ongwi t hl a t epa y me nti nt e r e s t . I n c e r t a i nc i r c ums t a nc e s , HMRCma yha v ebe e npr ov i de dwi t hf ul l i nf or ma t i ona ndma ybeoutof t i met os e e kt a xf orapa r t i c ul a rt a x y e a r .
Of t ent het a xl i a bi l i t yma ybeov er whel mi ngf ort hos et ha tha v e enj oy edabet t erl i f es t y l ebyv i r t ueofnotpa y i ngt het a x .I tt hes e s i t ua t i onst her ei sof t enaf ea rt ha tHMRCwi l l f or c et hes a l eof pr oper t yorc ommenc eba nk r upt c ypr oc eedi ng.Howev er , HMRCa r eof t en e x i bl ewi t hpa y menta ndt i mi nges pec i a l l y wher et het a x pa y eri sc ooper a t i ng. T het a xl i a bi l i t ywoul dha v ea r i s eni napr ev i oust a xy ea ra ndt he dueda t epa s s ed.T her ef or e , e x pec ti nt er es tona nyt a xl i a bi l i t y , a l t hought her a t ei snotpena l . Penal t i es Notonl ywi l l t her ebet a xa ndi nt er es tbutpena l t i esa r el i k el yt o bes oughti nmos tc a s es .Anewpena l t yr egi mewa si nt r oduc ed f r om 1Apr i l 2009.T hemos ti mpor t a ntpoi nti st ha ti nr es pec tof t a xi r r egul a r i t i ess pa nni ngal ongper i od, t her ea r et wopena l t y r egi mest ha tneedt obec ons i der ed. F orper i odspr i ort o2009, t hepena l t ys t a r t eda t100%a ndwa s mi t i ga t eda sf ol l ows : -Upt o20%f ordi s c l os ur eor30%i ft hedi s c l os ur ewa s v ol unt a r y ; -Upt o40%f orc ooper a t i on; a nd -Upt o40%s ubj ec tt ot hena t ur eoft het a xoffenc e .
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Ne ws l e t t e r I ti sne c e s s a r yt ode t e r mi newha ti sc ul pa bl ea ndwha ti snota s we l l a sc ons i de rt hegui da nc ef ore a c hmi t i ga t i ngf a c t or s . Pos t2009, S 97F i na nc eAc t2007s e toutt hepr ov i s i onsf orpe na l t i e sf ore r r or s :
Nameands hame
( 1) S c he dul e24c ont a i nspr ov i s i onsi mpos i ngpe na l t i e sont a x pa y e r swho— ( a ) Ma k ee r r or si nc e r t a i ndoc ume nt ss e ntt oHMRC, or ( b) Unr e a s ona bl yf a i l t or e por te r r or si na s s e s s me nt sby HMRC.
Ma y beoneoft hes t r onges tdet er r ent si st hef ea rofbei ng na medbyHMRCa sadel i ber a t et a xdef a ul t er .T hi sc a nonl y ha ppeni nc er t a i nc i r c ums t a nc esa l t hought het a xhur dl ei snot t ha thi gha ndwea r el i k el yt os eea ni nc r ea s ea ss et t l ementoppor t uni t i esc omet oa nend. T hei mpa c tofbei ngna medonHMRC’ swebs i t ei snotqua nt ia bl ea l t houghi tc oul ds i gnic a nt l ya ffec tr eput a t i onbot hf or bus i nes sa ndper s ona l r el a t i ons .
S c he dul e24s e t soutt hepe na l t i e sa sf ol l ows :
Maki ngadi s c l os ur e I fs omeonei ss ubj ec tt oa nenqui r ya ndha st a xi r r egul a r i t i es , i ti s nots ens i bl et owa i tf orHMRCt o ndi t .Atwor s t , i tc oul dr es ul t i nac r i mi na l i nv es t i ga t i ona l t houghmor el i k el yi twi l l j us tr es ul t i nhi gherpena l t i es .I twoul dbepr udentt ot el l as pec i a l i s ta dv i s eroft hei r r egul a r i t ya ndobt a i nt hei rv i ewonhowHMRCa r ei nf or ma t i onga t her i nga ndhowt heywi l l mos tl i k el yes t a bl i s hor ev enc on r m( t heyma ya l r ea dyk now) t hei r r egul a r i t y . T her ei sonl yonec ha nc et oma k eaf ul l a ndc ompl et edi s c l os ur e . I ti si mpor t a nti ti sa c c ur a t e , c ompl et ea ndeffec t i v e . I fma t er i a l f a c t sa r el a t erdi s c ov er eda ffec t i ngat a xl i a bi l i t y , HMRCa r ec ons i der a bl ymor el i k el yt oc r i mi na l l yi nv es t i ga t e . I ns er i ousc a s es HMRCma ydec i det opr os ec ut ei fma t er i a l l yf a l s es t a t ement sa r e pr ov i ded.
HMRCons t er oi ds Ar educ t i onofpena l t i esi sa c hi ev a bl ef r om t hes t a nda r dpena l t y bydi s c l os ur e .T hedi s c l os ur eofa ni na c c ur a c yi sdenedi nS c hedul e24a s : -T el l i ngHMRCa bouti t ; -Gi v i ngHMRCr ea s ona bl ehel pi nqua l i f y i ngt hei na c c ur a c yor undera s s es s ment ; a nd -Al l owi ngHMRCa c c es st or ec or dsf ort hepur pos eofens ur i ng t ha tt hei na c c ur a c yort heundera s s es s menti sf ul l yc or r ec t ed. Ahi gherdi s c ounti sa v a i l a bl ei ft hedi s c l os ur eunpr ompt ed. T he pot ent i a l di s c ount sa r es etouti nS c hedul e24. T hes t a nda r dper c ent a gema ynotber educ edt oaper c ent a get ha ti sbel owt he mi ni mum s hownf ori ta ss etouti nt hef ol l owi ngt a bl e:
Ma y bet hes t er oi dsha v en’ tf ul l yk i c k edi na l t houghHMRCi sa t ot a l l ydi ffer entbea s tt oda yt ha ni twa sadec a dea go. Her ea r e s omehi ghl i ght s : 1. I nf or ma t i oni sc ol l ec t eda ndpool edf r om di ffer ent Gov er nments our c esa swel l a st hi r dpa r t i eswi t houtt het a x pa y erk nowi ng; 2. T hega poft ec hni c a l k nowl edgea nde x per t i s eonc e c ons i der eds i gnic a nt l ywi debet weent hepr of es s i ona nd HMRCi snota ny mor e; 3. HMRCs i twi t hQueensCouns el a l s o; 4. T hepena l t yr egi mei sr ev a mpeda ndHMRCus ei t ; 5. Di s c l os ur eoft a xa v oi da nc es c hemesa ndt hegener a l a nt i a bus er ul ee x i s t snow; 6. Pr omot er soft a xs c hemesc a nf a c es i gnic a ntpena l t i esa nd moni t or i ng; 7. S er i a l us er soft a xa v oi da nc ec a nf a c emoni t or i ng; a nd 8. Pr os ec ut i ont a r get sha v ev i r t ua l l ydoubl edi nay ea r ! I fy ouha v ea nyc onc er nsa ndwoul dl i k et os pea kt os omeonef or a dv i c e , pl ea s edoc ont a c tus .
7
Ne ws l e t t e r Openi ngawi ndowwi der andwi der
T her e f e r e nc ei snott oourr e c e nthotwe a t he rbutt ot hos epe s k y HMRCoffic e r swhoope nat a xe nqui r ya ndk e e pa s k i ngmor e bl oodyque s t i ons .I nt he i rde f e nc e , t he ya r eof c our s eonl ydoi ng t he i rj ob.Ha v ey oue v e rha da ne nqui r ywhe r ey ouha v ebe e n ov e r whe l me dbyt henumbe rof que s t i onsort hepe r s i s t e ntne w que s t i oni ng?I ti si r r i t a t i ngf orbot hy oua ndt hec l i e nt . Keypoi nt s -Ra ndom S e l f As s e s s me nte nqui r i e sa r ee x c e pt i ona l l yr a r e ; -T a k ea dv a nt a geof s pe a k i ngt oa ni nde pe nde nts pe c i a l i s t ; -E nqui r i e sme a nshe i ght e ne dr i s kf orpr of e s s i ona l s ; a nd -E nqui r i e sne e dt obepr oa c t i v e l yma na ge dwi t ht hec l i e nta nd HMRC. Whe nt hes e l f a s s e s s me nts y s t e m wa sr s ti nt r oduc e d, i twa sdone ont heba s i st ha tt he r ewoul dbear a ndom s e l e c t i onof r e t ur ns e a c hy e a rt ha twoul dbee nqui r e di nt o: “ Wema ye nqui r ei nt oat a xr e t ur n, ac l a i m ma deout s i dear e t ur n, ora na me ndme nt( ac ha ngey ouma k et oy ourt a xr e t ur n, ort oa c l a i m) , i nor de rt oma k es ur et he ya r er i ghta ndt ha tpe opl epa y t her i ghta mountof t a x . S omee nqui r i e sa r es e l e c t e da tr a ndom a nds omea r es e l e c t e dbe c a us ewet hi nkt hei nf or ma t i onputon t her e t ur nl ook swr ongorbe c a us ewedonotunde r s t a ndi t . We c a nnots a ywhyweha v es e l e c t e di t . ” HMR M C’ sa ppr oa c ha ndme t hodf ors e l e c t i ngha sbe e nr ene d. Nowa da y s , s ophi s t i c a t e da ut oma t e da na l y s i si sus e dt oi de nt i f y hi ghe rr i s k sort a xi r r e gul a r i t i e s .T hei nf or ma t i ona tHMRC’ s nge r t i psi ss i gnic a nta ndi ti sr e s our c e f ul l ya na l y s e dbyt he i ra wa r d wi nni ngs of t wa r es y s t e msa he a dof a noffic e rorI ns pe c t orc ons i de r i ngope ni nga ne nqui r y . I ns i mpl et e r ms , ac ons i de r a bl ea mount of a na l y s i sha sbe e nunde r t a k e nbe f or ea ne nqui r yi sope ne da nd i ti sl i k e l yt ha tar e a s onha sbe e ni de nt ie da st owhya ne nqui r y s houl dbeope ne d. Enqui r i es : pr ac t i c al poi nt s Whe nHMRCi s s ueal e t t e rope ni nga ne nqui r yi twi l l s pe c i f yr e c or dsa ndi nf or ma t i onde s i r e da ndma ys e e kc l a r ic a t i onons pe c icpoi nt s .Whe r ea l l orc ons i de r a bl ebus i ne s sr e c or dsa r ede s i r e d, t hee nqui r ywi l l beaf ul l e nqui r y . E nqui r i e sc a nof t e nbea pr e l udet omor es e r i ousi nv e s t i ga t i onsa ndwhe r et he r ei sc onc e r n ov e rt a xa ffa i r sge ne r a l l y , i twoul dbepr ude ntt oc ons i de rs e e k i ng s pe c i a l i s ta dv i c ef ora ni nde pe nde ntopi ni on.Weoffe ranoobl i ga t i ons e r v i c et odi s c us ss uc he nqui r i e swi t hourne t wor kof pr of e s s i ona l s .
Al l oft hes er eques t ss houl dbema na ged: 1.I nf or ma t i ons houl dnots i mpl ybepa s s edt oHMRC, wi t hout f ul l c ons i der a t i onoft hei mpa c tofpr ov i di ngi t .Apr es ubmi s s i onr ev i ews houl dbeunder t a k ent oa s c er t a i nwhet hert her e a r ei dent ia bl et a xi r r egul a r i t i esort oi dent i f ywher eHMRCl i ne ofenqui r i eswi l l go. 2.Wher eameet i ngi ss ugges t ed, i ti ndi c a t esHMRCs eet ha t meet i nga sha v i ngac ommer c i a l benet .HMRCgui da nc et oI ns pec t or ss t a t es : “ Of t enameet i ngi sagoodwa yofbr ea k i ngt hedea dl oc kbut bea ri nmi ndt ha thol di ngameet i ngc a nbee x pens i v ea ndi nv ol v eal otoft i mes oy ouneedt obec l ea rwha ty oue x pec tt o a c hi ev e . Y ous houl da l wa y spr epa r et hor oughl yf orameet i ng a ndi ft her ea r et ec hni c a l i s s uest odi s c us sy ous houl dc ons ul tT G [ t ec hni c a l gui da nc et ea m] bef or et hemeet i nga nd, i ft het ec hni c a l i nputi ss ubs t a nt i a l , s omeonef r omT Gwi l l bee x pec t edt o a t t endt hemeet i nga ndt a k et hel ea dont ha tpa r t i c ul a ra s pec t . Buti na nyc a s ea tl ea s tt womember sofHMRCs houl dbepr es enta ta nymeet i ng. ” HMRC’ si nt er na l gui da nc ei ndi c a t est ha t : -T heoffic erdes i r i ngameet i ngneedst oc ons i dert he c ommer c i a l benet ; -F ul l pr epa r a t i oni nc l udi ngt ec hni c a l a na l y s i ss houl dbeunder t a k en; a nd -T heoffic ers houl dc ons i derwhoel s es houl dbei na t t enda nc e . 3.Hol di ngameet i nga tabus i nes spr emi s ema yc a us eundue di s t ur ba nc et ot hebus i nes sa ndma ya l s obea noppor t uni t yf or HMRCt os eeka c c es st obus i nes sr ec or dswhi c hha v enotbeen f ul l yc ons i der ed.T hes ugges t i onofora c t ua l meet i ngneedst o bec a r ef ul l yc ons i der eda ndma na ged( gi v i ngc ons i der a t i ona l s o t ot hepower sunderPa r t2S c hedul e36F i na nc eAc t2008) .
Onc ea ne nqui r yi sope ne d, HMRCma yt hr oughc or r e s ponde nc e r e que s ti nf or ma t i ona ndt he yma ys ugge s tame e t i ngt odi s c us s t a xma t t e r sors ugge s ta t t e ndi ngs a yabus i ne s spr e mi s e . 8
Ne ws l e t t e r 4.Whe r eHMRCc a r r youte nqui r i e sa ndr e v i e wr e c or ds , t he ys e t outdi s c r e pa nc i e sa ndt hea ddi t i ona l t a x( i nt e r e s ta ndpe na l t i e s ) . I nc e r t a i ns i t ua t i onsi tma ybemor ea ppr opr i a t ef ora na dv i s e rt o c ons i de rt hea r e a swhe r eHMRCha v ec onc e r ns , r e v i e wa ndpr e s e ntt he i ra na l y s i sofa nyt a xi r r e gul a r i t i e s .T hi sma yr e s ul ti na mor ebe nec i a l a ppr oa c ha sHMRCwi l l of t e ns e e kt oqua nt i f yl i a bi l i t i e sba s e dona s s umpt i ons / e s t i ma t i onsa nde x t r a pol a t i on. Whe r et het a xl i a bi l i t yi de nt ie dbyHMRCi sdi s a gr e e a bl e , t he onusofpr ooft oe s t a bl i s hot he r wi s el i e swi t ht het a x pa y e r , whi c h i sl i k e l yt or e qui r es pe c i a l i s ts uppor ta nda dv i c e .
T hel egi s l a t i onper mi t t i nga na mendmentt ot her et ur ni s :
Whena nopeni ngenqui r yl et t eri sr ec ei v ed, c ons i dert he f ol l owi ng:
Enqui r i es : Pr oc edur esandoper at i on
-Cons i dera ppr oa c hi ngas pec i a l i s tf ora ni ndependentv i ew ont her eques t–r ememberweofferanoobl i ga t i ons er v i c e t oourpr of es s i ona l net wor ka ndas ec ondpr of es s i ona l opi ni onc a nonl ybeus ef ul ; -T hepos i t i ons houl dbedi s c us s edwi t ht hec l i entt odet er mi ne whet hert her ea r ea nyt a xi r r egul a r i t i esa ndwha ta ppr oa c hi s s ui t a bl ei . e . adi s c l os ur eors i mpl ea mendmentofat a xr et ur n. -Chec kwhet heri tha sbeenc or r ec t l yopenedwi t ht hef or ma l not i c e; -I tma ybea ppr opr i a t et or eques ta noffic ert oi s s uea nenqui r y wher et heyha v es ental et t err eques t i ngi nf or ma t i onwi t houta f or ma l not i c e; -I tma ya l s obebenec i a l t or eques ta nenqui r yi sopened wher eques t i onsa r ea s k eda boutdi r ec t or ’ sper s ona l t a x a ffa i r swher et heenqui r yi si nt ot hec ompa ny’ st a xa ffa i r s ; -HMRCgui da nc es et soutt ha ti fa noffic eri sopeni nga n enqui r y , t heRi s kT ea m wi l l pr ov i dewi t haS t a nda r d I nf or ma t i onPa c k a gec ont a i ni ngs uffic i enti nf or ma t i ont o a ddr es st her i s k ( s ) i dent ied.
Cor r ec t i ngar et ur n
Enqui r yWi ndow
Anoffic e rofHMRCc a n, wi t hi n9mont hsofr e c e i v i ngar e t ur n, a me ndi twi t houtope ni nga ne nqui r yi nt ot her e t ur ni nor de rt o c or r e c t :
F r om 1Apr i l 2008, whenar et ur ni sr ec ei v edon, orbef or e , t her el ev a nt l i ngdea dl i ne , t heenqui r ywi ndowwi l l r unf or12mont hs f r om t heda t et her et ur ni sr ec ei v ed.
-Anobv i ouse r r ororomi s s i on. -Any t hi nge l s et ha tt heoffic e rha sr e a s ont obe l i e v ei si nc or r e c t ba s e doni nf or ma t i ona l r e a dyhe l da ndwhe r enomor e i nf or ma t i oni sne e de d.
I far et ur ni sdel i v er eda f t ert he x ed l i ngda t e , t heenqui r y wi ndowi se x t ended. T heenqui r ywi ndowi nt hes ec a s eswi l l not c l os eunt i l t hene x tqua r t erda y , f ol l owi ngt he r s ta nni v er s a r yof t heda yonwhi c ht her et ur nwa sr ec ei v ed.
T he s es or t sofa me ndme nt swoul dnor ma l l yr e l a t et owr ongl y s t a t e di nt e r e s t , di v i de nds , s a l a r ya ndt a xpa i d( P AYE ) .Howe v e r , i t i l l us t r a t e st ha tHMRC’ s“ Conne c t ” s of t wa r ema na ge sagr e a tde a l of i nf or ma t i ona ndma t c he si tup.T he r ea r eal otmor es our c e sofi nf or ma t i ona ndc onne c t i onsma debe t we e npe opl e , e nt i t i e sa nd t r a ns a c t i onst ha ni ns pe c t or soft a x e sc oul de v e ra c hi e v ewi t hout t het e c hnol ogi c a l a s s i s t a nc ea v a i l a bl et ot he m now.
Amendment s
5.T hee nqui r ypr oc e s si si nt e nde dt or e s ul ti nas e t t l e me ntofa r r e a r soft a x , i nt e r e s ta ndpe na l t i e s .HMRCc a nc ha r geape na l t yof upt o100%oft het a xdue( orhi ghe ri fi ti nv ol v e ss ome t hi ngoffs hor e ) . T hepe na l t yc a nbemi t i ga t e dba s e dont hel e v e l ofdi s c l os ur e , c oope r a t i ongi v e na ndt hes e r i ous ne s soft hei r r e gul a r i t i e s . Whi l s tape na l t yof100%i st e c hni c a l l ya c hi e v a bl e , HMRCs e tout s pe c icgui da nc eont hec a l c ul a t i onofpe na l t i e sa ndi nmos te nqui r yc a s e st hepe na l t ywi l l bemuc hl owe ri fc or r e c t l yma na ge d. 6.Whe r eas e t t l e me ntc a nnotbea gr e e d, a l t e r na t i v ec our s eof a c t i onc a nbec ons i de r e di nc l udi ngdi s put er e s ol ut i on( a ppoi nt me ntofame di a t or ) orpr oc e e di ngt ot r i buna l . F ormor ei nf or ma t i ononme e t i ngswi t hHMRCc l i c khe r et or e a d “ me e t i ngswi t hHMRCpa r tonea ndt wo” . F ormor ei nf or ma t i ononma na gi nge nqui r e sc l i c khe r et os e e“ t op t i psi funde ri nv e s t i ga t i on” .
Openi nganenqui r y T hes t a t ut ea l l owsHMRCt oope na ne nqui r yi nt ot hewhol e r e t ur n, oronl yi nt ot hea me ndme ntt oar e t ur nwhe nt her e s tof t her e t ur ni s na l , ori nt oac l a i m noti nc l ude di nar e t ur n. T hel egi s l a t i onper mi t t i nga nenqui r yi sa sf ol l ows :
At a x pa y erc a nma k ea na mendmentupt o12mont hsf r om t he l i ngda t e . T hea mendmentdoesnotc ha nget heenqui r yper i od f ort her et ur n. T her ei showev eras epa r a t eenqui r ywi ndowf ort hea mendment whi c hi supt ot hequa r t erda yf ol l owi ngt hea nni v er s a r yoft he da t et hea mendmentwa sma de . Enqui r ywi ndowexpi r ed Anenqui r yc a nnotbeopenedi nt oar et ur nora mendmentt ot he r et ur ni ft her eha sa l r ea dybeena nenqui r yi nt oei t hert her et ur n ora mendmentort hewi ndowha se x pi r ed.I ft her ei sa nenqui r y i nt oar et ur na ndt henas ubs equenta mendmenti sma de , a nenqui r yc a nbema dei nt ot ha ta mendment .
T heoffic erma ys t i l l bea bl et oma k eadi s c ov er ya s s es s ment . 9
Ne ws l e t t e r Upc omi ngs emi nar s : Ma na g i ngy ourVATa ndT a xRi s k
Br ea k f a s ts emi na rwi t hE dg eT a xL L Pa ndCent ur i onVAT
Cent ur i onVATS pec i a l i s t sa r eade di c a t e da nd a wa r dwi nni ngt e a mofhi g hl ye x pe r i e nc e dVAT s pe c i a l i s t s . Awa r de dt heBe s tUKVATT e a mi n 2013be angKPMG&De l oie ’ st ot het ops pot wewe r es hor t l i s t e da g a i ni n2015.
L i zMa her L i zs t a r t e dhe rc a r e e ri n VATi n1989wi t ht he f or me rHM Cus t omsa nd E x c i s et he nwor k e df or E r ns ta ndY oung , be c omi ngi t sfir s te v e rf e ma l e c or por a t eVATs e r v i c e s di r e c t ori nt heUK.
E dg eT a xL L Pa ndCe nt ur i onVA Twoul dl i k et of or ma l l yi nv i t ey out oa e ndourbr e a k f a s ts e mi na r s“ Ma na g i ngy ourVA Ta ndT a xRi s k ” . T hes e mi na r swi l l g i v ey out hec ha nc e t one t wor kov e rbr e a k f a s ta ndme e ts omene wpe opl ea swe l l a sg i v i ngy out heoppor t uni t yt ol e a r nhowt oma na g ey ourVA Ta ndt a xr i s kf r ome x pe r t s : Ant onL a ne , L i z Ma he ra ndJ ul i eRa wl i ns onS mi t h.
L i ze x c e l si nde l i v e r i ngVATbe s pok et r a i ni ngf or c l i e nt sbot hi nt heUKa ndi nt e r naona l l ya s we l l a st hr oug hCe nt ur i on’ sownVATT r a i ni ng pr og r a m. L i zi sar e g ul a rVATs pe a k e ra te v e nt s f orpr of e s s i ona l bodi e ss uc ha st heAAT , I CAE W, ACCAa ndCI MA.
T hes e mi na r swi l l c ov e r :
J ul i eRa wl i ns onS mi t h J ul i ewor k e donVAT Cont r ol wi t ht hef or me r HM Cus t oms&E x c i s e . S het he nwor k e df or E r ns t&Y oungt he n KPMGbe f or ej oi ni ng Ce nt ur i on.J ul i es pe c i a l i s e si npubl i c , c ha r i t y a ndnotf orpr ofits e c t or s .
-VA Tr i s k si ny ouror g a ni s aon, -Howy oumi g htha ndl eav i s i tf r omHMRC, -T hei nf or maona v a i l a bl et oHMRCa bouty ou, -Audi t sa ndt hepos s i bi l i t yoft he s ee s c a l angi nt oi nv e sg aons , -P e na l t yr e g i mea ndpr ot e cngf r ompe na le s , -Re duc i ngy ourr i s ka ndt a k i ngr e a s ona bl ec a r e . Whoa r et hes e mi na r sf or ? -Ac c ount a nt sa ndpr of e s s i ona l a dv i s or s -Bus i ne s sowne r s -Cl ubs , a s s oc i aonsa ndc ha r ie s
Da t es 23r dS ept ember-Br i s t ol T heKe ndl e s hi r eGol fCl ub He nfie l dRoa d Coa l pi tHe a t h Br i s t ol BS 362UY
29t hS ept ember-Ca r di ff As t us 6Cha r nwoodCour t P a r cNa nt g a r w Ca r di ff CF 157QZ
T i mi ng s 8: 30-Ne t wor k i nga ndbr e a k f a s t 9: 15-S t a r t 10: 45-F i ni s h
Cos t :£20 I fy oua nd/ ora nyc ol l e a g ue swoul dl i k et oa e ndpl e a s eRS VPt oKi r s t yDa ni e l ; k da ni e l @e dg e t a x . c omorMe r l eBe t he l l ; me r l e . be t he l l @c e nt ur i onv a t . c om l e ngusk nowwhi c hv e nuey ouwoul dl i k et oa e nda ndt hena me sofa nyc ol l e a g ue s y ouwi s ht obr i ng .
E dg eT a xL L Pi sas ma l l bou quet a xpr a cc es pe c i a l i z i ngi nT a xI nv e sg aons , Ri s kMa na g e me nt a ndCons ul t a nc y . E dg ei she a de dupbyMa na g i ng P a r t ne r , Ant onL a newhoi ss uppor t e dbyade di c a t e dt e a mofpr of e s s i ona l s .T hi sy e a rE dg ewa s s hor t l i s t e df or“ Be s tT a xI nv e sg aonsT e a m”i n t heT a x aonAwa r ds .
Ant onL a ne
ACha r t e r e dT a xAdv i s or , Ant ons pe c i a l i z e si nt a x i nv e sg aons , c ompl e x t a xpl a nni ng , pr ope r t y t a x aon, UKa ndoffs hor et r a di nga ndi nv e s t me nts t r uc t ur e sa nd a s s e tpr ot e con. Ant on s t a r t e dhi sc a r e e rI n E r ns ta ndY oung’ sT a x Ri s kMa na g e me ntT e a m.
Ant oni saCE DRa c c r e di t e dme di a t or , qua l i fie d t ode a l wi t hc ompl e xdi s put er e s ol u on. Ant on r e g ul a r l ys pe a k sa ndwr i t e sont het opi cofi nv e sg aonsa ndha sr e c e nt l yha dat a xdi g e s t “ Pr a cc a l ie sofT a xI nv e sg aons ”publ i s he d byT ol l e y ’ s .Ant onha sa l s oc ont r i but e dt o T ol l e y ’ sF i na nc eAc t2015ha ndbooka ndi si nt he e s t . pr oc e s sofwr inga not he rt a xdi g
Ne ws l e t t e r R e c r u i t me nt E dgeT a xL L Pa r el ook i ngf ormor ea ma z i ngpeopl et oj oi nt hei rt ea m. Wea r ec ur r ent l y r ec r ui t i ngf ort hr eepos i t i ons , pl ea s es eemor ei nf or ma t i onbel ow.
T axCas eManager : Wea r er ec r ui t i ngt a l ent edpr of es s i ona l st oa s s i s tma na gedi s c l os ur ec a s est oHMRC. I dea l l yy ouwi l l ha v ee x per i enc edea l i ngwi t ht a xenqui r i esora udi t sei t herwi t hi nt he pr of es s i onorf orHMRC. Y oua r el i k el yt obeCT Aqua l iedorhol ds i mi l a rqua l ic a t i ons / t ec hni c a l s k i l l s . Y ourr ol ewi l l bet owor kc l os e l ywi t hapa r t ne ronav a r i e t yof di s c l os ur ec a s e si nc l udi ngs us pe c t e ds e r i ousf r a uda nds e t t l e me ntoppor t uni t i e s . I na ddi t i ony ouwi l l bee nt hus i a s t i ca boutde v e l opi ngy ourownpr ol ea nda bi l i t i e st hr oughwr i t i nga r t i c l e s , pr e s e nt i nga ndme e t i ngi nt e r me di a r i e s . Y ouwi l l benonj udge me nt a l t owa r dst hos edi s c l os i ngt oHMRC. Y ouwi l l ha v egoodc ommuni c a t i ons k i l l sa ndde s i r ek e e pi ngpe opl e i nf or me dofpr ogr e s sa ndr e l a y i ngi nf or ma t i on. T her ol er e qui r e sape r s onwhoi se x c e l l e nta ta na l y s i ngs i t ua t i onsf r om di ffe r e nta ngl e s . Y ouwi l l bec ompe t i t i v ewi t hy our s e l f t ot hi nk t hr oughpr obl e ms , c r e a t es us t a i na bl ec ha l l e nge sa ndpr oduc equa l i t ywr i t t e nwor k . Y ouwi l l ha v et hea bi l i t yt opl a ny ourwor k l oa d, how wor kne e dst obea ppr oa c he d, de l e ga t ea ndma na geot he r st a k i ngr e s pons i bi l i t yt oc ompl e t ewor kwi t hi ns t r i c tt i me s c a l e s .
T axCompl i anc ePr of es s i onal : Wea r el ook i ngf orac ompl i a nc epr of e s s i ona l wi t hami ni mum oft woy e a r s ’ pos tqua l ic a t i one x pe r i e nc et os uppor tourt e a mi nt hepr oduc t i onofa c c ount sa ndt a xr e t ur ns . Y ouwi l l i de a l l yha v eapr of e s s i ona l a c c ount a nc yqua l ic a t i ona l t houghy ouma ya l s ohol dATTorCT A. Y ouwi l l ma na get hepr e pa r a t i onofa c c ount sa ndt a xr e t ur nsf orhi ghne twor t hi ndi v i dua l s , pa r t ne r s hi ps , l i mi t e dl i a bi l i t ypa r t ne r s hi psa nd c ompa ni e s . Y ouwi l l a l s oa s s i s twi t hpr e pa r i nga nda na l y s i nga c c ount si ndi s c l os ur ec a s e st oHMRC. T her ol er e qui r e sape r s onwhoi st hor ougha nde nj oy spr e pa r i nga c c ur a t ea udi tt r a i l sofwor kunde r t a k e n. Y oura t t e nt i ont ode t a i l wi l l be e x c e pt i ona l . Y ouwi l l pr i dey our s e l fonbe i ngor ga ni s e d, ma i nt a i ni nge x c e l l e nt l e s , me e t i ngde a dl i ne sa ndc ont r i but i ngv a l ua bl et e c hni c a l k nowl e dget oc a s ema na ge r s . Y ouwi l l beape r s onwhoc a na r t i c ul a t ewe l l wi t hc ol l e a gue sa ndwhoi sc omf or t a bl eme e t i ngc l i e nt sa ndi nt e r me di a r i e s .
Admi ni s t r at or : Wea r el ook i ngf orac on de nta nds e l f mot i v a t e da dmi ni s t r a t ort owor kwi t hourt e a ma ndk e e puse ffic i e nt . I de a l l yy ouwi l l be me t hodi c a l a ndor ga ni s e di ny oura ppr oa c ht ot a s k s . Y ouma yha v ee x pe r i e nc ewor k i ngwi t hi napr of e s s i ona l pr a c t i c ea l t hought hi si snot ne c e s s a r y . I ti smor ei mpor t a ntt ha ty out a k epr i dei nc ompl e t i ngt a s k sa ndl i k et oe ns ur ey ourwor k i nge nv i r onme nte nv i r onme nti si n or de r . Y ourr ol ewi l l i nc l ude : -Be i ngt he r s tpoi ntofc ont a c tf ori nc omi ngt e l e phonec a l l sa ndv i s i t or s ; -Ope ni nga ndl oggi ngma i l ont oours y s t e m; -E ns ur i ngc l i e nt l e sa r eor de r l y ; -Ma na gi ngs t a t i one r ya ndoffic es uppl i e s ; -Ar r a ngi ngme e t i ngs ; -At t e ndi ngi nt e r na l me e t i ngs , a c t i v e l ypa r t i c i pa t i nga swe l l a sr e c or di ngmi nut e sa ndf ol l owi ngupona gr e e da c t i ons ; -As s i s twi t hor ga ni s i ngc ha r i t a bl ef undr a i s i nge v e nt s ; a nd -S uppor tma r k e t i ngwi t hc a mpa i gnsa nde v e nt s . Y oua r el i k e l yt owor kc l os e l ywi t ha l l t e a m me mbe r sa nda ss uc hs houl dbee nt hus i a s t i ca boutge t t i ngi nv ol v e dwi t hne wc ha l l e nge sa nd wor k i ngt ode a dl i ne s . T her ol er e qui r e sape r s onwhoi se ne r ge t i c , ma k e swor kf una nde nj oy sbe i ngi nv ol v e di nne wj obs . Y ouwi l l beav a l ua bl et e a m me mbe r wi t ht hea bi l i t yt opl a ny ourwor kl oa d, s y s t e ma t i c a l l ya ppr oa c ht a s k sa nde nj oyoffe r i ngs uppor tt ot e a m me mbe r s . T oappl yt oanyoft her ol esabovepl eas es endyourCVandc overl et t ert oi nf o@edget ax. c om r ef er enc i ngt hej obt i t l e.
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