Edge Tax Newsletter June 2015

Ne ws l e t t e r

EdgeNews l et t er I s s ue3 J une2015

I nt hi si s s ue

Edi t or i al -T axr i s kupda t e

I ta ppe a r st ha tt hewor l di snota sonehope d: -T hec ount r yha sbe e nt owa raf e wt i me s , t hel e ga l i t i e sof whi c hha v ebe e n que s t i ona bl e ; -T hef a c tt ha t T onyBl a i rhe a de dt heL a bourpa r t ydur i ngt heGov e r nme nt ’ sc r e di tc a r d s pe ndi ngy e a r sa nde a r nsar e por t e d£330, 000f oronea ppe a r a nc es houl dr e pl a c et he deni t i onof i r onyi nt heOx f or dE ngl i s hDi c t i ona r y ; -Me mbe r sof Pa r l i a me nta ppe a rt ok nowpr e c i s e l ywha tl e gi t i ma t et a xpl a nni ngi sf ort he pur pos e sof t he i rowna ffa i r sa ndr e f us et os ha r ei twi t ht hepubl i c .T hi si ss ome wha t unf a i r ; -HS BCwe r ec r i t i c i s e df ora s s i s t i ngi nt hee v a s i ona nda v oi da nc eof t a xa l t hought he ba nk whoope ne da na c c ountf orMrRe dk na pp’ sdogs e e me dt obe ha v ec ompl e t e l y nor ma l l y( a sdi dHa r r y ) ; -Doe sGr e e c eha v ea nyt r a i ne da c c ount a nt sl i v i ngi nt hec ount r yt ha tc oul da s s i s twi t h pr e pa r i nga c c ur a t e na nc i a l s t a t e me nt sf ort heGov e r nme nt ?a nd -I sa ny oner e a l l ys hoc k e da tF I F Ar e c e i v i ngorma k i ngs us pi c i ouspa y me nt s ?

T her e a s onf orme nt i oni ngt hea bov ei st oe mpha s i s et ha tar e gul a rt a x pa y e rwhof e e l s t he r ei si ne qua l i t yordi s pa r i t yof t r e a t me nt , ma ynotha v er e ga r dt ot hel a wsof t hec ount r y ( t a xorot he r wi s e ) .

Anumbe rof pe opl ec ont a c t i nguspur s ua ntt oaHMRCl e t t e rha v e e x pr e s s e dt hi sv i e w.

T hos emos ta ggr i e v e dwe r ewi t hi nt her e mi tof t hee mpl oy e ebe nett r us ts e t t l e me nt oppor t uni t y( “ E BT S O” ) orc ont r a c t orl oa ns e t t l e me ntoppor t uni t y( “ CL S O” ) .T hepl a nni ng wa sma r k e t e dhe a v i l yt ope opl ewi t hi nc omeof s a y£50, 000a ndupwa r ds .I twa sma r k e t e d a sl e gi t i ma t ea ndc a s el a wwa si mpl i e dt os uppor tt hema r k e t i ng.T e nsof t hous a ndsof pe opl ef oundt he ywe r e na nc i a l l ybe t t e roffa ndwi t ht he i rne wf ounda bi l i t yt os pe nd, di d j us tt ha t .E x pe ns e si nc l ude dne whous e s , c hi l dr e n’ ss c hool f e e s , hol i da y sa ndge ne r a l l y i mpr ov i ngl i f e s t y l ee x pe ns e s .T hepr obl e mt ha tnowa r i s e si st he s ei ndi v i dua l sma yne e dt o downs i z ea ndt a k ec hi l dr e noutof s c hool i nor de rt oa ffor dt hel i a bi l i t i e s .

S i nc eourl a s tne ws l e t t e r , whi c hwa si s s ue ds hor t l ya f t e rt heE BT S Oc a met oac l os e , ma nyof t hos ewhodi dnote nt e rt heoppor t uni t yha v enowbe e ni s s ue da c c e l e r a t e dpa y me ntnot i c e s( “ APN” ) .Wi t ht hee ndda t el oomi ngf ort hec ont r a c t orl oa ns e t t l e me ntoppor t uni t y a not he rr oundof APNsmus tbee x pe c t e d.

T hes ol i c i t or ’ ss e t t l e me ntoppor t uni t yi sov e ra ndwedon’ te x pe c ta nyAPNst obei s s ue d ge ne r a l l ya l t houghwedoe x pe c taf e wt a r ge t e dpr of e s s i ona l sf orc r i mi na l i nv e s t i ga t i on.

T he ne ws t r i c tc r i mi na l offe nc el a wi sc ons i de r e dl a t e r .

Onc et heCL S Oi sov e r , wha ti sl e f ta ndhowwi l l HMRCoc c upyt he i rda y s ?T heoffs hor e di s c l os ur ef a c i l i t y( “ ODF ” ) wi l l k e e pma nya noffic e re mpl oy e df ory e a r s .T hedi ffic ul t yi st ha t t hos ewhoha v ea ffor de doffs hor es t r uc t ur e sge ne r a l l ys oughtt a xa dv i c ea ndt he yma y be l i e v et he ydon’ tha v ea nobl i ga t i ont odi s c l os e .Wea l s oc ons i de rt hi sl a t e r .

I f HMRC c ont i nuet het he meof di s c l os ur eoppor t uni t i e s , wewoul de x pe c tt os e eone sf or : -Cont r a c t orl oa na r r a nge me nt spos t5Apr i l 2011; -Pr o tr e duc i nga r r a nge me nt sus i ngt r us t s ; -Pe ns i onf unde x t r a c t i ona r r a nge me nt s ; a nd -Ca l l a ndputopt i ona r r a nge me nt s .

T he s ea r eonl yaf e wpos s i bi l i t i e s .Wha ti sc l e a ri st ha tt het e r r i t or yi smuc hdi ffe r e ntt ot ha t of af e wy e a r sa goa ndt hos eunde r t a k i ngt a xpl a nni ngwhi c hi snotc omme r c i a l l ydr i v e n, ma ybewi s et oha v ea ni nde pe nde ntr e v i e wof t hepl a nni ngnow.

Ant onL ane , Managi ngP ar t ne r

- Cont r ac t orL oan Set t l ementOppor t uni t y( ” CL SO” ) - Offs hor eDi s l os ur eF ac i l i t y( ” ODF” ) - Thef ut ur eofHMRC pr os ec ut i ons -F oc usonpar t ner s hi pt axi s s ues– wher ear ewenow?

-L i mi t edL i abi l i t y Par t ner s hi ps( ” L L P’ s ” ) -Car sandbene t si nki nd -L oanst opar t i c i pa t or s - Cl as s2Na t i onal I ns ur anc e Cont r i but i ons( “ NI C” )and par t ner s hi ps–ac ur i ousaffai r ?

-Di s gui s edempl oy mentandpr ot al l oc a t i on - Sel fas s es s mentt axr et ur ns - Edgenews

Don’ tf or gett of ol l owusons 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 ng t hebar c odebel ow:

Ne ws l e t t e r T axRi s kUpdat e I nourv i e wt hec ur r e ntma i nr i s ki sf ort hos ewhout i l i s e d s t r uc t ur e sa nda r ec hoos i ngnott os e t t l ea ffa i r si nf a v ourof gr oupl e ga l a c t i onort heout c omeof ahe a r i ng.I ta ppe a r s t ha tt he r ei shopet ha tac ha l l e ngea ga i ns tHMRCwi l l r e s ul ti n anot a xout c ome .Ourv i e wi st ha tt hi si smi s pl a c e dgi v e nt he l i k e l i hoodt ha t , i nt hee v e ntof f a i l i ngt hr ought hec our t s , HMRCma yi nt r oduc epe na l r e t r os pe c t i v el e gi s l a t i on.

T hef ol l owi ngs e t t l e me ntoppor t uni t i e sha v ec l os e d: -E mpl oy e ebe nett r us ts e t t l e me ntoppor t uni t y( 31Ma r c h 2015) ; a nd -S ol i c i t or ss e t t l e me ntoppor t uni t y( 9J une2015) .

T hec l os ur ei sl oomi ngf ort hec ont r a c t orl oa ns e t t l e me nt oppor t uni t y( 30J une2015) .

T heoffs hor edi s c l os ur ef a c i l i t y r e ma i nsope nt o31De c e mbe r2015a ndt hel e tpr ope r t y c a mpa i gnr e ma i nsope ni ndeni t e l y .

Ac c e l e r a t e dpa y me ntnot i c e sha v ebe gunt obei s s ue di n r e l a t i ont o: -E mpl oy e ebe nett r us t s ; -F i l m pa r t ne r s hi ps ; -Bus i ne s spr ope r t yr e nov a t i ona l l owa nc epa r t ne r s hi ps ; a nd -Re s e a r c ha ndde v e l opme ntpa r t ne r s hi ps .

Wea r ea wa r et ha te nqui r i e sha v ebe e nope ne di nt o: -I nv e s t me nt sbe i ngs ol dt ope ns i onst ha tma ygi v er i s et oa s ur pl usa s s e tc ha r ge ; -Mobi l ef oodc a t e r e r s ; -Ana r r a nge me ntdi v i di nge mpl oy me nta nds e l f e mpl oy me nta ndas y s t e m of “ t a xe ffic i e nt ” pa y me nt s ; a nd -S e l f e mpl oy me nts t a t usi nt hec ons t r uc t i oni ndus t r y .

Cont r ac t orLoan Set t l ementOppor t uni t y KeyPoi nt s -T hec ont r a c t orl oa ns et t l ementoppor t uni t y( “ CL S O” ) i s c omi ngt oa nend; -Not ic a t i ont oHMRCmus tbema deby30J une2015; -Di s c l os ur ea ndpa y mentdueby30S ept ember2015; -T i met opa yopt i onsa r ea v a i l a bl e; -T heCL S Oi snotf orpos t5Apr i l 2011t r a ns a c t i ons ; -Ma nyot hers t r uc t ur esf a l l wi t hi nt her emi tofwhyt heCL S O wa soffer ed; -Ot hers t r uc t ur esa r enots a f ef r om HMRCa t t a c k ; -Ca s el a wa ppea r st obei nHMRC’ sf a v our ; -T hepos i t i oni sgoi ngt obewor s egi v ent henewc r i mi na l offenc e , pena l t i esa ndi nc r ea s edt a r getpr os ec ut i ons ; -Cons i ders pea k i ngt ousi ft her ei sev enapos s i bi l i t yt ha ta s t r uc t ur ey oua r ea wa r eofc oul dbec ha l l enged….

HMRC’ sc ont r a c t orl oa ns et t l ementoppor t uni t y( “ CL S O” ) wa s l a unc hedon24Ma y2014a nda ppl i est ot a xy ea r supt o5Apr i l 2011.

Anot ic a t i ont oent ert hes et t l ementoppor t uni t ys houl d bema det oHMRCby30J une2015.

T ha ti snott oof a ra wa ys oi ti spr oba bl yi mpor t a ntf orus er st o c ons i derwhet hert heya r ei norout .I ti sa l s oequa l l yi mpor t a nt f orus er sofs i mi l a rs t r uc t ur esbef or eora f t er5Apr i l 2011t o c ons i derma k i ngadi s c l os ur e .

Wes etoutbel ows omet hought pr ov ok i ngpoi nt sf orus er sof “ r emuner a t i ona ndi nc ent i v es t r uc t ur es ” t oc ons i dert hei rt a xr i s k s .

Anumberof “ s ol ut i ons ” wer ema r k et edt oc ont r a c t or st hr ough weba dv er t i s i ng, t el es a l es , a nds a l est ea mst a r get i ngs pec ic c a t egor i esofpr of es s i ona l s ; I Tc ons ul t a nt sa ndmedi c a l pr of es s i ona l sf ore x a mpl e .T heoffer i ngsnor ma l l yi ndi c a t ed( i fnots t i pul a t ed) : -Al a r geper c ent a geoft hegr os s“ ea r ni ngs ” r ec ei v edt a xf r ee ( s a y85%) ; -T ur na r oundoff undswi t hi naqui c kper i od( 24t o48hour s ) ; -S i gnic a ntt r a c kr ec or d; -Nos uc c es s f ul enqui r i esbyHMRC; a nd -F ul l yHMRCc ompl i a nt .

T he“ s ol ut i ons ” offer edupt o5Apr i l 2011wer egener a l l yempl oy ments t r uc t ur es , a l t houghaha ndf ul ofs t r uc t ur esf ort he s el f empl oy edort hos ewi t hs er v i c ec ompa ni ese x i s t ed.T he s et t l ementoppor t uni t yi sa i meda tc ont r a c t or ss oi ta ppea r st o a ppl yt oi ndi v i dua l sbei ngc ont r a c t edt onumer ousr ol eswi t h t hi r dpa r t i esov eraper i odoft i me .

2

Ne ws l e t t e r Howe v e r , s i mi l a rs t r uc t ur e sha v ebe e nus e di ndi ffe r e nts i t ua t i ons : -At r a di ngori nv e s t me ntc ompa nyma yha v ec ont r a c t e dwi t h at hi r dpa r t yorc ont r i but e dt oa na r r a nge me ntot he rt ha na n e mpl oy e ebe nett r us t( “ E BT” ) s a ya“ r e mune r a t i ont r us t ” , whi c hi nt ur na ndnotbyv i r t ueof a ne mpl oy me nt r e l a t i ons hi pl e ndsf undst os a y , as ha r e hol de rdi r e c t or ; -As e l f e mpl oy e dpe r s onma yha v ee nt e r e ds i mi l a r t r a ns a c t i onsa st hos es e touti nt he r s tbul l e tpoi nt .

I nr e l a t i ont oa“ r e mune r a t i ont r us t ” , i ti snot e dt ha ts omes t r uc t ur e swe r ef a c i l i t a t e dbyade e dof a dhe r e nc egi v i nga l l t hepr ot s ge ne r a t e dt ot het r us tora ne nt i t yonbe ha l f of t het r us ts uc ha sa pe r s ona l ma na ge me ntc ompa ny( a“ PMC” ) .

I ft hi si sac omme r c i al ar r ange me ntt he r ewoul dbeac or r e l at i onbe t wee nt hec ont r i but i onandt hepot e nt i al f ut ur epr ot abi l i t yoft hec ompany– howc ant hi sbei ft hepr ot sar eadhe r edt oas t r uc t ur e ?

HMRCs t a t et ha t “ ac ont r a c t orl oa ns c he mei sat a xa v oi da nc e a r r a nge me ntwhe r enonUKe mpl oy e r sha v epa i dy ouunt a x e d i nc omeorgi v e ny oual oa ni ns t e a dof pa r tof y ours a l a r y . ”I tma y bee a s yt he r e f or et oc ons i de rt ha tc e r t a i na r r a nge me nt sa r enot wi t hi nt heCL S Obe c a us et he : -S t r uc t ur ei spos tApr i l 2011; -Cont r a c t orwa snote mpl oy e d; -S a l a r ywa snotpa i d; a nd -Ar r a nge me ntwa sf orc omme r c i a l pur pos e sa ndnotf ort a x a v oi da nc e .

Ar et he yhowe v e r , wi t hi nt hes pi r i tof t heCL S Oa ndwoul dHMRC c ons i de rma k i ngus eof t hedi s c l os ur eoppor t uni t ya ppr opr i a t e ?

Whe r et hes i t ua t i ona r os ea f t e rApr i l 2011, i ti sc l e a rt ha tt he s e t t l e me ntoppor t uni t yi snota v a i l a bl e .

Whe r er e l i a nc ei sba s e dont hes t r uc t ur eha v i ngnoe mpl oy me nt r e l a t i ons hi p, nos a l a r ypa i da ndt a xa v oi da nc emot i v e , e a c hwi l l be t e s t e ds ubj e c t i v e l y .

Sel f empl oyed:whe t he rs ome onei sa c t ua l l ys e l f e mpl oy e di s de t e r mi ne dbyanumbe rof f a c t or s .I ti snots ol e l yr e l i a ntont he c ont r a c t si npl a c e .T heba dge sof t r a dea r ec ons i de r e dt oe s t a bl i s hwhe t he rs ome onei sonbus i ne s sof t he i rowna c c ount .E a c h ba dgene e dst obec ons i de r e da ndt heba l a nc ene e dst obei nt he f a v ourof t hepe r s onc l a i mi ngt obes e l f e mpl oy e d.

Sal ar y: Ma nyc a s e sha v ec ha l l e nge dwha ti sa ne mol ume nta ndi t i si nt r i ns i c a l l yl i nk e dt owhe t he rapa y me ntorbe netha sbe e n pr ov i de dt oa ne mpl oy e e .I ti se v i de ntt ha twhe r eas e l f e mpl oy e d pe r s oni sa c t ua l l ye mpl oy e d, i ti sl i k e l yt ha te i t he rdi r e c t l yori ndi r e c t l yt he ywoul dha v er e c e i v e da ne mol ume ntf r om t hec ons i de r e ds t r uc t ur e s .

Commer c i al andnotf ort axavoi danc e:T hi si sv er ymuc ha s ubj ec t i v et es tt ha ti sev erev ol v i ngdependi ngonwhet hert he c our t sl ookt hr ought hel ega l s t r uc t ur ea nds ubs t a nc eornot .

F ore x a mpl e , a na r r a ngementma yl ega l l ybees t a bl i s hedt o i nc ent i v i s es uppl i er sofabus i nes sa l t hought het r a ns a c t i ons t ha tf ol l owma ys i mpl ya ppea rt obenetempl oy eesors omeonewhoc oul dbec ha l l engeda sbei nga nempl oy ee .

T hec a s eofPhi l i pBoy l evRev enue&Cus t oms2013ma ybet he r ea s onHMRCe x udec on denc ei nt hi sa r ea .Admi t t edl y , ot her c a s esS empr a , De x t r aa ndRa nger sma ynotbes owa r ml yembr a c ed.MrBoy l ewa sas ha r et r a derwhowa sempl oy ed t hr ougha nI OMc ompa nya ndr ec ei v edamodes ts a l a r ypl us l oa nst hr oughat r us ta r r a ngement .Ana r eac ons i der edwa s whet herBoy l eha dma deat r a ns f erofa s s et sa br oa df ort he pur pos esofi nc omet a xa nt i a v oi da nc el egi s l a t i ona ndt he v er di c t : “ Wi t hr e gar dt os .

7 3 9of I CT A, whi l s t wec ons i de rt hat t hemoni e s r e c e i v e dbyMrBoy l easpur por t e dl oansar ei nf ac t e mpl oy me nt i nc ome , i nt hee v e nt t hat wear ewr ongandt hes umss houl dpr ope r l ybec ons i de r e dt obec api t al , t he nwe ndt hat byr e as onof s .

7 3 9 ( 3 ) t he ys houl dbede e me dt obeMrBoy l e ’ si nc omef oral l pur pos e sof t heI nc omeT axAc t s . ” S omeonewhoha st a k enpa r ti nac ont r a c t orl oa ns c hemema y s t i l l ha v et opa yi nc omet a xont hel oa n.

Whi l s tt heCL S Oi s ev i dent l ya i meda tonegr oup, t hepr i nc i pl esonwhyt he oppor t uni t yha sbeengi v enc a nc l ea r l ya ppl yt oma nys i mi l a r s t r uc t ur espr ea ndpos t5Apr i l 2011.

T hos enott a k i ngt heoppor t uni t yma y ndt hems el v esi na s i mi l a rs i t ua t i ont ot hos et ha tdi dnotent ert heempl oy eebenett r us ts et t l ementoppor t uni t ywhi c hendedon31Ma r c h 2015.Ac c el er a t edPa y mentNot i c esonma nyha v ebeeni s s ued f or c i ngt heus er st oc ons i derwhet hert heygenui nel ywi s ht o pr oc eedt hr ought hec our t sors et t l e .T her ei snoa ppa r ent r ea s ont hi swon’ tha ppenf orus er sofc ont r a c t orl oa ns t r uc t ur espr e5Apr i l 2011.

F ort hos ewi t hi ns i mi l a rs t r uc t ur esbef or eora f t er5Apr i l 2011, i twoul dbepr udentt oc ons i deropt i onsnow.Gi v ent ha t HMRCa r ea bl et oi dent i f yus er soft hes es t r uc t ur esei t herby r ec ei v i ngi nf or ma t i onf r om na nc i a l i ns t i t ut i onsordi r ec tf r om pr omot er sa ndoper a t or s , i ti st obee x pec t edt ha tal et t erwi l l bel a ndi ngwi t hi nt hene x ty ea rors o.Ma y be , HMRCwi l l ev en openaf ewmor es et t l ementoppor t uni t i es .I ti sunl i k el yt ha t wa i t i ngf oras et t l ementoppor t uni t ywi l l bebenec i a l .

Our a dv i c ewoul dbet os pea kt ousa boutdi s c l os ur eopt i onsnow.

Onel as tt hought , i fi nf or mat i onwi l l pas sundert he offs hor edi s c l os ur ef ac i l i t yandgi vent henewaut omat i c c r i mi nal offenc epl ust hehi gherpenal t i esi nr el at i ont o offs hor eel ement s , i si tr eal l ywor t hwai t i ng? …. .

3

Ne ws l e t t e r ODF-Ohmy , doesi t appl yt ome?

KeyF ac t s : -ODFde a dl i nebr oughtf or wa r d; -HMRCa r er e s t r uc t ur i ngnowt oma na gec a s e sori nv e s t i ga t e ; -T het a xl a wi nt hi sa r e ai st hemos tc ompl i c a t e d; -T hec i r c ums t a nc e sadi s c l os ur ema yber e qui r e di na r e gr e a t e rt ha nmos twi l l a s s ume ; -T her i s kof c r i mi na l i nv e s t i ga t i oni ss i gnic a nt l yhi ghe r ; a nd -Wes e touts omec i r c ums t a nc e swhe r ec ons i de r i ngt heODF ma yber e l e v a nt .

I twa sav e r ys unnyda ya ndmos tunf or t una t et ha tt hema j or i t y of i twa ss pe nti nHMRC’ soffic e swi t hat e a m whoa r ebe i ngr e a l l oc a t e dt ot a c k l eoffs hor et a xa v oi da nc e / e v a s i on.Whi l s twi de l y r e por t e di nt heme di at ha tHMRCa r et a c k l i ngt a x“ a bus e ” t hr ought heus eof offs hor es t r uc t ur e s : Dot hos eus i ngt hem r eal l yknowwhet hert heyar epot ent i al l ywi t hi nt heODF? T hel e gi s l a t i ont ha ta ppl i e st ooffs hor es t r uc t ur e se s t a bl i s he dt o mi t i ga t et a x e si sa c c e pt e da st hemos tc ompl e xweha v e .Of t e na c l i e ntwoul dha v ebe e ne nc our a ge di f notobl i ge dt os e e k Que e n’ sCouns e l ’ sopi ni on, whi c hunde rt hel a wa tt het i me woul dha v ede mons t r a t e dt he ydi dnotha v ei nt e ntt oe v a det a x .

Howe v e r , t hepr opos e dne wl e gi s l a t i ondoe s n’ tr e qui r et hene e d t opr ov ei nt e ntt obea ne v a de ri tme r e l yr e qui r e st a xt oha v e be e ne v a de d( k nowi ngl yornot ) .Doest hi smeant hati ft he i nt er pr et at i onoft hel awwaswr ong, s omeonehasevaded?

We l l i ta ppe a r ss o.

Whi l s ti nt heme e t i ng, as e ni ori ns pe c t orc omme nt e dwi t hi na ge ne r a l c onv e r s a t i ont he i rs ur pr i s et ha tt he yha dupt onows e e n f e wne wc a s e s .

Howe v e r , HMRCa r ede pl oy i ngr e s our c e st hr ough c ons i de r a bl ei nt e r na l r e s t r uc t ur e st ot a c k l eoffs hor ea bus es oi ne v i t a bl yt he ybe l i e v et ha tt he r ea r ehi ghnumbe r swhowi l l c ome f or wa r dorHMRCi nt e ndt oi de nt i f yl ot sof t a x pa y e r swhos houl d ha v ec omef or wa r d.

T hec onv e r s a t i onpr oc e e de dt oi de nt i f yt ha tt hi st e a m, ba s e di n a nout s k i r toffic ei nt heWe s tMi dl a ndswa sgoi ngt obef or t y s t r ongc ompr i s i ngoffs hor es pe c i a l i s t s , i nv e s t i ga t or sa ndc r i mi na l i nv e s t i ga t or s .

HMR M Cs t a t e“ T he r e ’ snot hi ngwr ongwi t hha v i ngi nv e s t me nt s ov e r s e a sa sl onga sy oude c l a r ea l l t a x a bl ei nc omea ndga i nson y ourUKt a xr e t ur n” .

T ha tmus tbehuger e l i e f s ol onga sy oudo de c l a r eory ouha v ec e r t a i nt yy oudon’ tne e dt ode c l a r e .

Rewi nd, t hi si st hemos tc ompl exar eaoft axl aw, ar eyous ur eyou don’ thavet odec l ar eanyt hi nges pec i al l ywhenunders c r ut i ny?

T heODFgi v e sa noppor t uni t yt obr i ngt a xa ffa i r supt oda t e .

I f y oune e dhe l pt ode c i dewhe t he ry ou’ v epa i dt her i ghta mount of t a x , a s ky oura dv i s e rory ouc a na s kHMRC….

T heODFf ort heCr ownDependenc i esbega non6Apr i l 2013 a ndt hedea dl i net onot i f yundert hef a c i l i t ywa sbr oughtf or wa r dt o31Dec ember2015( f r om 30S ept ember2016) .

S ot her ei sabi toft i me .

I tt r a ns pi r est ha ti nf or ma t i oni sbei ng c ol l a t eda l r ea dya nds omeofi ti sa ppa r ent l yma k i ngi t swa yt o HMRC.F i na nc i a l i ns t i t ut i onsa r eobl i gedt oc ol l a t ei nf or ma t i on onoffs hor ea c c ount sa ndpr ov i det hem t oHMRC. T hedeni t i on ofna nc i a l i ns t i t ut i oni swi dea ndmea ns“ aCus t odi a l I ns t i t ut i on, aDepos i t or yI ns t i t ut i on, a nI nv es t mentE nt i t y , oraS pec i edI ns ur a nc eCompa ny” .

We ndt hedeni t i onof “ Cus t odi a l I ns t i t ut i on” i nt er es t i ng bec a us ei tc ov er sa nyent i t yt ha thol ds , a sas ubs t a nt i a l por t i on ofi t sbus i nes s ,na nc i a l a s s et sf ort hea c c ountofot her s .

T hi sba s i c a l l ya ppl i est omos ta dmi ni s t r a t or sofs t r uc t ur esdes i gnedt o mi t i ga t et a x es .I na ddi t i on, t hedeni t i onofi ns ur a nc ec ompa ny c ov er st hos et ha tc a ni s s ueorha v ear es pons i bi l i t yt opa yunder a na nnui t yc ont r a c t .

I nf or ma t i onont hef ol l owi ngwi l l bepr ov i dedt oHMRC: -Ov er s ea sa c c ount s ; -I ns ur a nc epr oduc t s( i . e . per s ona l por t f ol i obondsa nd s i mi l a rs t r uc t ur es ) ; -I nv es t ment shel dt hr oughov er s ea ss t r uc t ur es( i . e . c ompa ni es , pr ot ec t edc el l c ompa ni es , f ounda t i onsa nd t r us t s ) .

T hei nf or ma t i oni nc l udesdet a i l sofei t her : -Ac c ountora s s ethol der ; -T he“ owner ” oft heent i t yhol di ngt hea s s eti nc l udi ng t hei r : oNa me; oAddr es s ; oDa t eofbi r t h; oT heba l a nc eoft hea c c ount ; a nd oPa y ment sma dei nt oi t .

4

Ne ws l e t t e r I sc on de nc er unni nghi ght ha tt hes t r uc t ur ei sl e gi t i ma t e ?I s t ha tgoi ngt os t opana mea ppe a r i ngonal i s tf ore nqui r y ?

Pr oba bl ynot !I f t he r ei sa ne nqui r y , wha ta r et hec ha nc e sof t he“ gr e y ” a r e a sof t hemos tc ompl e xt a xl e gi s l a t i onbe i ngs c r ut i ni s e d?

Annui t yCont r ac t s :

T he s ea r es omeof t hel e s ss t r a i ghtf or wa r dc i r c ums t a nc e s whe r ewei ma geHMRCwi l l wa ntt oc ha l l e nge :

Annui t yc ont r a c t sha v ebeenut i l i s edi nanumberofwa y st o mi t i ga t et a x es .T hemet hodsi nc l udeent er i ngi nt oa r r a ngement st odi s pl a c el i a bi l i t i esunderl oa na gr eement sf ore x a mpl e , di r ec t or ’ sl oa na c c ount sort hos ewi t ht r us t s .Al s o, a nnui t i es ha v ebeenut i l i s edt oa r gua bl ye x t r a c tf undsf r om pens i onsa s wel l a smi t i ga t ei nher i t a nc et a x( ” I HT” ) .

Compani e s : manage me ntandc ont r ol

Foundat i ons : c or por at eent i t yort r us t

I saboa r dus ur pe d?Dene di nl a wt he r ea r et wof or msof us ur pa t i on:

T het a xl i a bi l i t yoff ounda t i onswi l l dependonwhet hert he s t r uc t ur ei sas et t l ementorat r us twi t hi nt a xl egi s l a t i on.T he deni t i onma ybedi ffer entf orI HT , CGTa ndi nc omet a xa ndt he t a xt r ea t menti shi ghl yc ompl i c a t eda ndunt es t ed, whi c hwi l l ma k ef ori nt er es t i ngdi s c us s i onswi t hHMRC.

1.

Whe r et heboa r dme r e l ypur por tt obeaboa r da nda c tunde r t hei n ue nc eof a not he r ; a nd 2.

Whe r eape r s onout s i deof t heboa r dma k e sde c i s i onswi t houtduer e ga r df ort heboa r d.

I ns ur anc ewr apper s : l oansorpr emi ums Ma nyi ns ur a nc ewr a ppe r ss uc ha spe r s ona l por t f ol i obonds ( ” PPBs ” ) ha v eal owpr e mi um a ndl oa nsa r et he nma det o unde r l y i nge nt i t i e s .T hei nt e nt i oni st ha tt hegr owt hwi t hi nt he wr a ppe ri sr ol l e dupt a xf r e e .

Howe v e r , i f t hel oa ni sr e ga r de da s apr e mi um, t hea nnua l t a xont hepr e mi umst oPPBswoul dbe hi ghe r .T he r ei sa l s oapot e nt i a l di s put et owhe t he rt het r a ns f e r of a s s e tl e gi s l a t i onwoul da ppl yt ot hee nt i t i e sowne dbyPPBs ma k i ngt he i ri nc omea t t r i but a bl et ot het r a ns f e r or .

As i mi l a r pr ov i s i ona ppl i e sf orc a pi t a l ga i nst a x( ” CGT” ) .

T r us t s : s et t l ori nt er es t edornot Anumberofol dert r us t swer ees t a bl i s hedwi t h“ dummys et t l or s ” f ort hepur pos eofa nony mi t y .Howev er , s omema yha v eoper a t eda snons et t l ori nt er es t edwhenl ook i ngt hr ought hec i r c ums t a nc esa st owhowa st het r a ns f er or , t heya r ei nf a c ts et t l or i nt er es t ed.T het a xt r ea t mentc a nbec ons i der a bl ydi ffer enti n s uc hc a s es .

Commer c i al pur pos e Muc hoft hea nt i a v oi da nc el egi s l a t i ondoesnota ppl ywher e t her ea r egenui nec ommer c i a l r ea s onsf ort hes t r uc t ur e .I ti s a nt i c i pa t edt ha tonc eas t r uc t ur ei si dent ied, a nye x empt i onf or t hes er ea s onswi l l needt obeev i denc ed, whi c hma ygi v er i s et o numer ouspr obl emsi fr ec or dsha v enotbeenpr oper l yma i nt a i neda ndt her eha sbeenac ha ngei na dmi ni s t r a t i on.

5

Ne ws l e t t e r TheF ut ur eofHMRC Pr os ec ut i ons Wha ta c t i v i t yc oul da t t r a c tt hea t t e nt i onof HMRCc r i mi na l i nv e s t i ga t or s ?Wee x a mi net hebe hi ndt hes c e ne smov et owa r dsmor e pr os e c ut i onsa swe l l a si de nt i f y i ngt het y peof a c t i v i t yt ha tc oul d bec a ught .

Keyf ac t s -Cr i mi na l i nv e s t i ga t or ss i twi t hi nHMRC’ sc ompl i a nc e de pa r t me nt s ; -Pr os e c ut or sa r ei nv ol v e di nc a s e sa tt hebe gi nni ng; -E a c he nqui r yha st hea bi l i t yf ori nt e r na l gui da nc ef r om bot h c r i mi na l i nv e s t i ga t or sa swe l l a spr os e c ut or s ; -Pol i c yi sdi r e c t l yl i nk e dt ode t e re v a s i onbypr os e c ut i ngi n s i t ua t i onst ha tt hewi de s pr e a dpubl i cc a nr e l a t et o; -Ac t ua l sout we i ghpr e di c t i ons ; -Pr of e s s i ona l sbe wa r e ; a nd -S e e ka ni nde pe nde ntv i e wa tt heout s e tof a ne nqui r y .

Cr i mi na l i nv e s t i ga t or sa ndl e ga l a dv i s e r snows i twi t hi nmos t de pa r t me nt swi t hi nHMRC.T hemov ei si nt e nt i ona l gi v e nt he e x pe c t e dr i s ei npr os e c ut i ons .I nas pe e c hbyKe i rS t a r me rQC, Di r e c t orof Publ i cPr os e c ut i onson23J a nua r y2013, t hef ol l owi ng wa sr e v e a l e d: “ Agai ns t t hat bac k gr ound, y ouwi l l , nodoubt , bepl e as e dt ohe ar t hat t hec r i mi nal j us t i c er e s pons et ot axe v as i oni sbe i ngr ampe d up.

T he r ear et hr e es t r andst ot hi s : -F i r s t , as t r onge r f r audpr os e c ut i onc apabi l i t yhasbe e n de v e l ope df ol l owi ngt heme r ge r of t heCPSwi t ht heRe v e nue andCus t omsP r os e c ut i onsOffic e .

-S e c ond, i nc onj unc t i onwi t hHMRC, as t r at e gi cde c i s i onhas be e nt ak e nr adi c al l yt oi nc r e as et henumbe r of t axe v as i on c as e spr os e c ut e d.

-T hi r d, wor k i ngt oge t he r , HMRCandt heCPShav enow de mons t r at e dt hat i t i spos s i bl et os uc c e s s f ul l ypr os e c ut enot onl yi ndi v i dual s , gr oupsandor gani s e dc r i mi nal swhoe v ade t axor e x c i s edut y , but al s ot hos ewhos e t ups ophi s t i c at e dbut di s hone s t t axav oi danc es c he me s . “ At t hes amet i me , s e ni or j udge shav emadei t c l e ar t hat , whe ni t c ome st ol ar ges c al et axe v as i on, e v e nt hos ewi t hout pr e v i ous c onv i c t i onsc ane x pe c t s i gnic ant c us t odi al s e nt e nc e s . ” T hef a c tt ha tc r i mi na l i nv e s t i ga t or snows i twi t hi nmos tHMRC c ompl i a nc et e a msme a nst ha tpr os e c ut or sa r ei nv ol v e di nc a s e s a tt hebe gi nni ngof a ni nv e s t i ga t i on.T hi sme a nst ha tt he r ema y onl ybes us pi c i onwhe npr os e c ut or sge ti nv ol v e da ndt he yc a n he l pt oi de nt i f yoffe nc e sa ndwha te v i de nc ewoul dbene e de dt o pr ov eac a s e .

Haveyoueverwonder edwhyHMRCar emaki ngapar t i c ul arenqui r yorr eques t i ngpr i mar ydoc ument s ( evi denc e) ?

Wea r enots pec ul a t i ngt ha tea c hc a s eunderenqui r ywi l l be onei dent iedf orc r i mi na l i nv es t i ga t i on, f a rf r om i t .Wea r e mer el ypoi nt i ngoutt ha tea c henqui r yha st hea bi l i t yf ori nt er na l gui da nc ef r om bot hc r i mi na l i nv es t i ga t or sa swel l a spr os ec ut or s .

T hi sc oul dha v et hebenetofamuc hmor es t r ea ml i ned c a s ea nda neffic i entpr oc es sofga t her i ngev i denc et opr ov ea s us pec t edt a xi r r egul a r i t yor , i ft hei r r egul a r i t y / a c t i v i t ywer e s ev er eenought owa r r a ntc r i mi na l i nv es t i ga t i on.

HMRC’ ss el ec t i onpol i c yf orpr os ec ut i onha sa l s oc ha nged.T he onl yc a s est ha twer ehea r da boutbyt hepubl i ca tt hes t a r tof myc a r eerwer ehi ghpr ol eones .T hepol i c ybei ngt ha tpr os ec ut i nghi ghpr ol ec a s esha damedi aa dv a nt a get owa r nt he wi derpubl i coft hec ons equenc es .Howev er , i nJ ul y2013 HMRCr ec ei v edar es ea r c hr epor t “ HerMa j es t y’ sRev enuea nd Cus t oms( HMRC) Qua l i t a t i v er es ea r c hwi t hS ME sa wa r eof pr os ec ut i ons ” .I ti sl i kes omeoneatHMRCwasgi venas ubs c r i pt i ont ot heHar var dBus i nes sRevi ewandc ons c i ous l y pos edt heques t i on: doourc us t omer sr el at et oourpr os ec ut i onpol i c y?

T he ndi ngswer et ha tt hepubl i cf oundouta boutpr os ec ut i onst hr oughwor dofmout h/ gos s i p, l oc a l news pa per sa nd na t i ona l pa per s : “ Ov e r al l , ‘ l oc al gos s i p ’ wass e e nt opl ayt he s t r onge s t r ol ei nt hes pr e adof s t or i e sac r os sawi de r , l oos e r ne t wor kof ac quai nt anc e s .

Gos s i phadapar t i c ul ar l ypowe r f ul hol di ns mal l t owns , andl oc al c as e st hat c aus e da‘ s c andal ’ we r e di s c us s e dqui t eope nl yamongawi dene t wor k . ” T heel ement speopl er ec a l l edi nr el a t i ont oac r i mi na l i nv es t i ga t i onwer e: -T hepr ev ent i onoft r a di ngdur i ngt hei nv es t i ga t i on; -Howi nv a s i v et hei nv es t i ga t i onpr oc es swa s ; -Reput a t i ona l da ma ge; -Pr of es s i ona l c r edi bi l i t y ; a nd -Ca r eerj eopa r dy .

6

Ne ws l e t t e r Ani nt e r e s t i ngf a c ti st ha tt her e v i e wi de nt ie dt ha tpe opl edi s t i ngui s he dwi t ht het y pe sof e v a de ra ndc i r c ums t a nc e s : -Cl e a r c utc r i mi na l e x a mpl e s ; -We a l t hyi ndi v i dua l smot i v a t e dbygr e e d; -“ Ca s hi nha nd” t r a de swhe r ee v a s i onwa ss t a nda r dpr a c t i c e ; a nd -E x a mpl e sof s uffe r i ngbus i ne s s e sa nds ma l l e ra mount s .

I ti st he r e f or enotuns ur pr i s i ngt ha ts i nc et hi sr e v i e w, HMRCha s pr os e c ut e da ndpubl i c i s e dpr os e c ut i onsl oc a l l ya ndna t i ona l l y .

HMRCha snots i mpl yt a r ge t e dhi ghpr ol ec a s e sa ndi ns t e a di tha s i nc r e a s e dpr os e c ut i onsi na r e a swhe r et hepubl i cma ymor ee a s i l y r e l a t e .

Ke i rS t a r me rQCa l s os e touti n2013t ha t“ HMRCwi l l r e f e r s uffic i e nt c as e st ot heCPSt oe nabl epr os e c ut i onsf or nonor gani s e d t axf r audt or i s ef r om: -1 6 5i ndi v i dual si n2 0 1 0 / 1 1 , t o -5 6 5i ndi v i dual st hi sy e ar ( 2 0 1 2 / 1 3 ) , t o -1 1 6 5i ndi v i dual si n2 0 1 4 / 1 5 . ” F r om Apr i l 2010t oMa r c h2014HMRCha v epr os e c ut e d2, 650i ndi v i dua l s( i nc l udi ngba r r i s t e r s , s ol i c i t or sa nda c c ount a nt s ) r e s ul t i ng i nac umul a t i v e2, 700y e a r sof c us t odi a l s e nt e nc e s .

Ourqui c ka na l y s i si ndi c a t e st he s e gur e se x c e e dKe i rS t a r me r ’ spr e di c t i ons .

Ana dv i s erma yc ons i dert heenqui r i est ober out i nea l t hough i twoul da l wa y sbepr udentt os eekas ec ondopi ni onea r l yon whenHMRCr a i s ea nenqui r y .T her ei sa l s oapot ent i a l di r ec t r i s kwher et het a x pa y eri sr epr es ent edbyapr of es s i ona l who ma yi ns omewa ya ppea rora c t ua l l ybei nv ol v edwi t horc onnec t edt ot het a xi r r egul a r i t y .AtE dge , wea r eha ppyt oha v ea noobl i ga t i ondi s c us s i onwi t ha na dv i s erorc l i entont hei rs i t ua t i on.

-T woNewCr i mi nal Offenc es : “ T a xev a der sa ndt he pr of es s i ona l swhoena bl et a xev a s i onwi l l f a c et oughnew s a nc t i ons , i nc l udi ngt wonewc r i mi na l offenc esa ndhi gher pena l t i es , underanewr egi met oc r a c kdownonoffs hor e ev a der st hepr ev i ousChi efS ec r et a r yt ot heT r ea s ur yDa nny Al e x a ndera nnounc edonT hur s da y19Ma r c h” .

T hes ea r es er i ousmea s ur esont opofe x i s t i ngmea s ur est ha t a r edes t i nedt or es ul ti nmor er ev enuea ndmor epr os ec ut i ons .

T hepr eel ec t i onnewsi sc ur r ent l ya l l a boutt heGov er nment ov er s pendwhenc ompa r edt oRev enuei nt a k e .T hi sc a nnotbe ami r a geofeffor t st ha twon’ tha v ea ni mpa c t .F ore x a mpl e , t he r egul a t i onst oi mpl ementt heUK’ sa ut oma t i ce x c ha ngeofi nf or ma t i ona gr eement se x pec t st oy i el dr es ul t s : Y ear 2016/ 17 2017/ 18 2018/ 19 2019/ 20

E x a mpl e swhe r eHMRCwi l l ge ne r a l l yc ons i de rc omme nc i nga c r i mi na l i nc l ude : -I ndi v i dua l shol di ngapos i t i onof t r us torr e s pons i bi l i t y : s ol i c i t or , a c c ount a ntor na nc i a l a dv i s e r ; -Ma t e r i a l l yf a l s es t a t e me nt sa r ema de : de ni a l of offs hor eba nk a c c ount se t c .

-Ma t e r i a l l yf a l s edoc ume nt spr ov i de di nt hec our s eof ac i v i l i nv e s t i ga t i on: a c c ount s , i nv oi c e sorf or ge dl e ga l doc ume nt s ; -I nr e l a t i ont oa na v oi da nc es c he me , r e l i a nc ei spl a c e don f a l s e / a l t e r e ddoc ume ntorma t e r i a l f a c t sa r emi s r e pr e s e nt e d t oe nha nc et hec r e di bi l i t yof as c he me ; -De l i be r a t ec onc e a l me nt , de c e pt i on, c ons pi r a c yorc or r upt i on i ss us pe c t e d; -I mpor t a t i onore x por t a t i onbr e a c hi ngpr ohi bi t i onsa nd r e s t r i c t i ons ; -Mone yl a unde r i nga ndi npa r t i c ul a rwhe r epr of e s s i ona l s ha v ea s s i s t e d; -Whe r et he r ei sapr e v i ous l yc ommi t t e doffe nc e ; -Ca s e si nv ol v i ngt he f t , mi s us eorde s t r uc t i onof doc ume nt s ; -E v i de nc eof a s s a ul tort hr e a t st oHMRCoffic i a l s ; -Or ga ni s e dc r i mi na l ga ngsa t t a c k i ngt het a xs y s t e m or s y s t e ma t i cf r a udswhe r el os s e sr e pr e s e nt sas e r i oust hr e a tt o t het a xba s e , i nc l udi ngc ons pi r a c y ; a nd -L i nk st os us pe c t e dwi de rc r i mi na l i t y , whe t he rdome s t i cor i nt e r na t i ona l , i nv ol v i ngoffe nc e snotunde rt he a dmi ni s t r a t i onof HMRC. Ma nyc r i mi na l i nv e s t i ga t i onswi l l a r i s ewhe r et hes us pe c ti si l l a dv i s e d.I f c a r ei st a k e na tt heout s e tof HMRC’ se nqui r i e s , t her i s k of pr os e c ut i onc a nbema na ge d.

£ 90, 000, 000 270, 000, 000 75, 000, 000 130, 000, 000

I ti snota l l a boutt hemoneyt hough.T hemea s ur es , whi c hwe ha v es eenov ert hepa s tf ewy ea r s , a r edet er r ent st ot hos e t r y i ngt or educ et hei rt a xl i a bi l i t y( a l t houghev er y ma nus edt o ha v et ha tr i ght–I RCVDuk eof Wes t mi ns t er1936) .Ar gua bl y ev er y ma ns t i l l ha st ha tr i ghta l t hought heRev enuedon’ ts eem t ok nowwha tt heyc ons i derr i ghtorwr ong, wha ti st a xmi t i ga t i on, a v oi da nc eorev a s i on.T hi sma k esf orawor r y i ngs i t ua t i on gi v ent het wonewc r i mi na l offenc es .

T ha nk f ul l yal a s tc ha nc e di s c l os ur ef a c i l i t ywi l l bei nt r oduc ed!

T hepl a ni s : -Anews t r i c tl i a bi l i t yc r i mi na l offenc ef oroffs hor eev a s i on; -Cr i mi na l offenc ef orf a i l ur et opr ev entort hef a c i l i t a t i onof t a xev a s i on; -I nc r ea s et he na nc i a l pena l t i esf a c edbyev a der s ; -I nt r oduc enewc i v i l pena l t i esont hos ewhoena bl eev a s i on s ot heywi l l f a c et hes a mepena l t ya st het a xev a der ; a nd -Publ i c l yna mea nds ha mebot hev a der sa ndt hos ewho ena bl eev a s i on.

T henews t r i c tl i a bi l i t yoffenc eba s i c a l l ymea nst ha tpr ov i ng “ i nt ent ” won’ tbenec es s a r y : Cur r ent l yt a xev a s i oni swher e s omeonei nt endst odef r a udt heRev enue , wher ea st henewof f enc ewi l l r emov et heneedt opr ov ea ni nt ent i on( ordemons t r a t enoi nt ent i on) .

7

Ne ws l e t t e r -HMRC( orPa r l i a ment ) ha v eadut yt oc l ea r l ydene a c c ept a bl et a xpl a nni ng, t a xmi t i ga t i on, t a xa v oi da nc ea nd t a xev a s i on.Des pi t et hephenomena l a mountofpower s i nt r oduc ed, t heyha v es t i l l f a i l edt hi ss i mpl et a s k .

I ta ppea r s t ha tanumberofL or dsa swel l a smyf a v our i t ee xPr i me Mi ns t er , T onyBa l l k nowwha ti sa c c ept a bl e .

MrI ns pec t orha v i nga r r i v eda tt heoffic esa ndl oc k eduphi sbi c y c l ewi l l bepl ea s edt ok nowt ha tDa nnyha sa l s o“ aut hor i s e dov e r £ 1bi l l i onof i nv e s t me nt i nHMRCt oe ns ur et he yhav et het ool st odo t he i rj ob. ”Nots ur ewha tt hi si st obes pentona l t houghaf ew dec entc offeema c hi nesf orv i s i t or swoul dbeni c e .I ti ss us pec t edt ha tagooda mountwi l l bes pentonc ont i nui ngt hegr owt h a ndpowerofI Ts y s t emsa ndf r a uddet ec t i ons of t wa r e( Connec t ) a soppos edt oempl oy i ngmor eorc r ea t i ngabonuspool .

T hei nc r e a s e d na nc i a l pe na l t i e spr opos e dwi l l a l s ol i nkt he pe na l t yt ot hev a l ueof a s s e t sk e pti na noffs hor eba nka ndnot t het a xdue .

T hi si ss omuc hana s t i e rpe na l t y !

Pr e v i ousChi e f S e c r e t a r yt ot heT r e a s ur y , Da nnyAl e x a nde r , s a i d “ I hav emadeagr e at de al of pr ogr e s si ns hut t i ngdownt hos e l oophol e sandc l ampi ngdownonaggr e s s i v eav oi danc eande v as i on. ”I ti sgoodf orDa nnyt ot a k er e s pons i bi l i t ya l t houghwe wonde ri f hei sa l s ot obl a mef ort hepoi nt sweha v er a i s e d be f or e : -HMRCha v eadut yt oi nf or mt a x pa y e r swha ti sa c c e pt a bl e ornoti nat i me l yma nne r .Whyt he na r et he ynow a t t a c k i ngt a xpl a nni ngt ha tha sbe e nwe l l e s t a bl i s he df ora de c a deormor e ?Whydi dn’ tt he yl e gi s l a t eade c a dea go?

Da nnya l s oa nnounc ed“ T heChi e f S e c r e t ar yhasal s ot odayc al l e d ont het axandac c ount anc ypr of e s s i onal r e gul at or ybodi e swho pol i c epr of e s s i onal s t andar dst omax i mi s et he i rr ol ei ns e t t i ngand e nf or c i ngc l e ars t andar dsar ounde nabl i ngandpr omot i ngav oi danc e . ”I ti st her ef or ehi ghl yl i k el yt ha tr eput a bl er msf ol l owi ng t hec onduc toft hei rpr of es s i ona l bodi eswi l l s t eerc l ea rf r om a ggr es s i v et a xpl a nni ng.

T henewr egi mewi l l bes ubj ec tt oc ons ul t a t i ona ndi ti s s omet hi ngwewi l l c er t a i nl ybei nv ol v i ngour s el v esi n.I fonl yt o t r ya ndma k es ur et ha ta v oi da nc ea ndev a s i ona r ec l ea r l ydenedi nr es pec toft hi sr egi me .Gi v ent hehi s t or yoft hepa s tf ew y ea r s , t her egi mewi l l bec l os et owha ti spr opos ed.

Al l t hos et ha tha v eunder t a k ent a xs t r uc t ur i ng, i npa r t i c ul a roffs hor e , s houl ds eeka ni ndependentv i ewonwhet hert heya r ea t r i s k .I npa r t i c ul a r , t hei ra dv i s er sa ndt hos ea dmi ni s t er i ngt he s t r uc t ur ess houl da l s oc ons i dert hei rr i s k s .

8

Ne ws l e t t e r Foc usonPar t ner s hi pT ax Li mi t edLi abi l i t y I s s ues–wher ear ewenow? Par t ner s hi ps( LLP’ s ) Keypoi nt s : -Ca r ei sne e de dwhe r ev e hi c l e sa r epr ov i de dbyL L P’ swi t h c onne c t e dc ompa ni e s ; -T r a ns f e r sof v a l uef r om L L P’ st oi t spa r t ne r sma ybewi t hi n s 455CT A2010; -Pa r t ne r si npr ope r t ypa r t ne r s hi pss houl dc ons i de rNI C l i a bi l i t i e s ; -L L Ppa r t ne r ss houl dme e tt het e s t sf ors e l f e mpl oy e d pa r t ne r s ; -Pr o ts ha r e st opa r t ne r swi t hl owe rt a xl i a bi l i t i e ss houl dbe a l l oc a t e donac omme r c i a l ba s i s ; -L L P’ sr e ma i na e x i bl epr opos i t i on!

Pa r t ne r s hi psa nds pe c ic a l l yL i mi t e dL i a bi l i t yPa r t ne r s hi ps( L L P’ s ) a r ee s pe c i a l l yv i a bl ewhe r epe r s onsc omet oge t he rwi t hav i e wt o ope r a t i ngabus i ne s swi t hav i e wt oapr o ta ndwi s ht oa v oi dt he bur e a uc r a c yof ope r a t i ngat r a di t i ona l l i mi t e dc ompa nys e tup.

L L P’ sha v ebe c omei nc r e a s i ngl ymor epopul a ra nd, duet ot he i r e x i bi l i t y , ha v ena t ur a l l ye nt e r e dt het a xpl a nni nga r e na .

HMR M Cdonotv i e wma nyof t hewa y sL L P’ sa r ema r k e t e da swi t hi n pa r l i a me nt ’ si nt e ntwhe nL L P’ swe r ei nt r oduc e di n2001.

T he r eha v ebe e ns omequi t es i gnic a ntc ha nge st ot het a xt r e a t me ntof pa r t ne r s hi ps , a ndmor es pe c ic a l l yt oL i mi t e dL i a bi l i t y Pa r t ne r s hi ps( L L P’ s ) , ov e rt hel a s tf e wy e a r s .

Ma nywi l l v i e wt hec ompl e x i t i e sa ndv a r i ouspot e nt i a l t a xt r a ps t ha tc omewi t hL L P’ sa sar e a s ont onotc ons i de rt he m whe npl a nni ngora dv i s i ngonbus i ne s ss t r uc t ur e s .

Af t e rov e r he a r i ngs e v e r a l a c c ount a nt ss t a t i ngt ha tpa r t ne r s hi ps a r ej us tnotav i a bl eopt i ona ny mor e , wef e l tc ompe l l e dt os umma r i s et hec ha nge s , t r a psa ndpi t f a l l st ha ta r enowa s s oc i a t e d wi t hL L P’ s .

I nourv i e w, aL L Pope r a t e donc omme r c i a l t e r mss t i l l c a r r i e st he s a me e x i bi l i t ya ndpot e nt i a l t a xa dv a nt a ge sa st he ya l wa y sha v e .

L L P’ swer ei nt r oduc edi nl egi s l a t i oni nApr i l 2001.

T heyha v e ma nys i mi l a r i t i est oor di na r ypa r t ner s hi psi nt ha tt heya r egov er nedbyapa r t ner s hi pdeeda nda r et r a ns pa r entf ort a xpur pos es .

T hema i na dv a nt a gest oL L P’ sov eror di na r ypa r t ner s hi ps wer et ha tpa r t ner sc oul dl i mi tt hei rl i a bi l i t yt ot hea mountof c a pi t a l c ont r i but eda nda l s oha v ec or por a t es t a t usa ndar equi r ementt omeetCompa ni esHous eobl i ga t i ons ; t husgi v ent hei m pr es s i onofamor ea c c ount a bl ebus i nes s( a c c ount sa nda nnua l r et ur nsa r er ea di l ya v a i l a bl eonCompa ni esHous e) .

L L P’ swer ei ni t i a l l ypopul a ra mongpr of es s i ona l s er v i c er ms s uc ha ss ol i c i t or sa nda c c ount a nt s , a l t hought heys oonbec a me mor epopul a ri not hera r ea ss uc ha sr ec r ui t menta genc i esa nd ownerma na gedbus i nes s es .

T hepopul a r i t yofL L P’ si nbus i nes ss t r uc t ur esc oul dbea t t r i but ed t ot hei re x i s t enc ei nl egi s l a t i ona ndunder s t a ndi ngoft hei rt a x t r ea t mentbec omi ngmor ees t a bl i s hed.

Howev er , HMRCa ndt he popul a rpr es sma yha v eusbel i ev ei twa sbec a us et heypr ov i ded t hepot ent i a l t opr ov i det a xf r eebenet s , f a c i l i t a t ebenec i a l l oa ns , r emov eempl oy mentr el a t i ons hi psa nds hel t erpr ot s f r om t hehi gherr a t esofi nc omet a xa ndna t i ona l i ns ur a nc ea ppl i c a bl et oi ndi v i dua l s .

Ast heus eofL L P’ si nt a xpl a nni ngbec a memor epopul a r , mea s ur eswer ei nt r oduc edt oc omba twha tHMRCr ega r deda suna c c ept a bl ea nt i a v oi da nc e .

I nt hi sa r t i c l ewea ddr es st hef ol l owi ng f oura r ea si nc hr onol ogi c a l or dert ha tha v ebeenei t herc ha l l engedi nc our tors pec ic a l l ya ddr es s edi nl egi s l a t i on: -11J une2012( t a xc a s edec i s i on) –Ca r sa ndbenet si nk i nd; -20Ma r c h2013( budgeta nnounc ement ) –L oa nst o pa r t i c i pa t or s ; -4Apr i l 2013a nd19Ma r c h2015( HMRCa nnounc ement ) ; Cl a s s2NI Ca nds l eepi ng/ i na c t i v epa r t ner s ; a nd -10Dec ember2013( c ons ul t a t i on) –Di s gui s edempl oy ment a ndpr o ta ndl os sa l l oc a t i on.

9

Ne ws l e t t e r Car sandBene t si nKi nd Bac kgr ound Ac ompa ny ’ se mpl oy e e s( i nc l udi ngi t sdi r e c t ors ha r e hol de r s ) s uffe rwha tmi ghtbec ons i de r e dpuni t i v ebe neti nk i nd c ha r ge sonv e hi c l e sa ndf ue l pr ov i de dbyt hec ompa ny .

T he v a l ueof t hec a ra ndf ue l a c t ua l l yus e dc a nr e l a t i v e l yqui c k l y beov e r t a k e nbyt hebe neti nk i ndc ha r ge s .

Onewoul ds uppos eHMRC’ sa ppr oa c h, i nl i newi t hgov e r nme ntpol i c yt or e duc ec a r bonf oot pr i nt s( a ndi nc r e a s er e v e nue ) ,i st ha tc a r sa r eba d; t he yc onge s tourr oa ds , s poi l our e nv i r onme nt , ma k eusl a z ya ndun tbynotc y c l i ngorr unni ngt owor k , a nd, f ors ome , e nc our a gee a r l ymor ni ngr oa d r a gea f t e rt hea l a r m gots nooz e dumpt e e nt i me sonaF r i da y mor ni ng.

Ont heot he rha nd, ac ompa nypr ov i de dc a rmi ghtpr e v e nt e mpl oy e e sdr i v i ngde a t ht r a psa st he ys t r uggl et oc opewi t h t hei nc r e a s i ngc os tof l i v i ng, i mpr ov ee mpl oy e er e t e nt i onby ma k i ngt he mf e e l mor ei nt e gr a t e dt ot hebus i ne s s , e ns ur e t he ya r et ur ni ngupt oc us t ome r si nas ui t a bl ev e hi c l e , ha v e a de qua t ei ns ur a nc e , e t c e t e r a .

Carbene tr at es T het a x a bl ea mounti sba s e dont hec a r sl i s tpr i c ewhe nne w a ndf ort he2015/ 16t a xy e a ra sf ol l ows :

T hi ss c ena r i oc oul dc a t c has ha r ehol derdi r ec t orwhoi spr ov i dedac a rt hr ought hec ompa nya ndt hef uel i spa i df orona c ompa nyc r edi tc a r dt hr oughoutt hey ea r .

T hi ss i t ua t i onc oul d a r i s ef orma nys ma l l ownerma na gedbus i nes s eswhoc oul d ndt hems el v esc a ughtbyt her ul es .

Cl ea r l y , t hea dv i c ei nt hes es i t ua t i onswoul dbet onothol dt he c a ri nt hec ompa nya ndowni tpr i v a t el y .

Howev er , t hi spot ent i a l l yr educ edt hes c opeofr ei mbur s ementofa l l owa bl ee x pens esa ndmea nti nc r ea s edr emuner a t i onwa sr equi r edt o f undt hev ehi c l epr i v a t el y .

Duet ot hei rf a v our a bl et a xpos i t i on, pa r t ner s hi pswer ee x pl or eda sa na l t er na t i v et ohol dv ehi c l es us edi nbus i nes s es .

ThePar t ner s hi pSol ut i on Amemberofapa r t ner s hi pi sr ega r deda ss el f empl oy eda nd s ubj ec tt oi nc omet a xa ndc l a s s2a nd4na t i ona l i ns ur a nc ec ont r i but i ons( NI C) ont hei rs ha r eofpr ot s .

E v eni fapa r t ner s hi p empl oy sa ndoper a t esP AYE , i t smember ss houl dbee x c l uded f r om r emuner a t i onv i at hepa y r ol l .

I tf ol l owst ha t , s i nc et her ei s nota nempl oy mentr el a t i ons hi pbet weenapa r t ner s hi pa ndi t s pa r t ner s , t hepa r t ner sa r enots ubj ec tt ot hebeneti nk i nd r egi me .

T oa v oi dt hes ebeneti nk i ndc ha r gesi mpos edonc ompa ni es , ma nyownerma na gedbus i nes s esa ndempl oy er swi t h eet sof v ehi c l esr ec ei v edpr of es s i ona l a dv i c ea ndi mpl ement edL L P’ s t opr ov i dewha twoul dot her wi s ebeat a x a bl ec ompa nybeneti nk i nd.

T hi st a xpl a nni ngbec a mer el a t i v el yc ommona ndwa sf r equent l yr ega r deda ss t a nda r dpl a nni ng.

Of t ent hepa r t ner s hi ps woul dha v el i t t l eornoot herc ommer c i a l a c t i v i t y .

Na t ur a l l y , HMRCdi dn’ ta gr eewi t ht hes ea r r a ngement sa nds ubs equent l y c ha l l engedt hem.

T hef uel beneti sc a l c ul a t edbymul t i pl y i ngt heCO2us edf or t hec a rbenetby£22, 100i r r es pec t i v eoft hea c t ua l f uel us ed.

S o, f ore x a mpl e , t hev ehi c l ea ndf uel beneti nk i ndc ha r ge f orapet r ol c a rwi t hal i s tpr i c eof£15, 000t ha tomi t s165 g/ k m CO2woul dbe£10, 388f orea c hy ea rt heempl oy eeha s us eofi t .

I ft heempl oy ee ’ spr i v a t eus ei snots i gnic a ntwhen c ompa r edt ot hebeneti nk i ndc ha r ge , t hi sc oul dber ega r deda spuni t i v e .

TheCooperCas e[ 2012]UKFTT439( TC) Cooper , Cooper , Cooper , Coopera ndL ea s i deT i mber&Bui l der s Mer c ha nt sL t dvT heCommi s s i oner sf orHerMa j es t y’ sRev enue &Cus t omsi sa r s tt i ert r i buna l ( F TT) c a s e .

T hec a s ebr oa dl ys et apr ec edentt ha tpr ov i di ngc a r st ha twoul d, i nt hea bs enc eof t heL L P , ot her wi s ebepr ov i dedbyac ompa nys houl dnotpr ev entbeneti nk i ndc ha r gesa r i s i ng.

10

Ne ws l e t t e r T hec a s ei nv ol v e dme mbe r sof af a mi l ywhowe r ea l l di r e c t or sor f a mi l yme mbe r sof t hedi r e c t or sof af a mi l yowne dc ompa ny ( L e a s i deT i mbe r&Bui l de r sMe r c ha ntL i mi t e d) , a ndwe r ea l s o pa r t ne r si naL L P( “ Coope rMa na ge me ntS e r v i c e sL L P” ) .

T heL L Pe mpl oy e danumbe rof s t a ffa ndpr ov i de da dmi ni s t r a t i ons e r v i c e st ot hec ompa nya swe l l a spr ov i di ngc a r sa ndf ue l t ot hepa r t ne r s .

T heL L Pc ha r ge dt hec ompa nyama na ge me nt f ort he s es e r v i c e s .

T he r s tt i e rt r i buna l ( F TT) f oundt ha t : -t hepa r t ne r sdi dnotha v es i gnic a nti nv ol v e me nti nt he L L P’ sope r a t i on; -t hec a r sa ndf ue l pr ov i de dwe r enotne c e s s a r yf ort he pa r t ne r st oc a r r youtt he i rdut i e sa spa r t ne r s ; -t heL L Pr e l i e dont hec ompa nya si t ’ sonl yc us t ome ra nd t he r e f or et hepa r t ne r sc a r swe r ea c t ua l l ypr ov i de df ort he c ompa ni e sbe net ; -t hec ont r a c t ua l a r r a nge me nt sbe t we e nt hec ompa nya nd L L Pwe r enotons i mi l a rt e r mst ot hos eof pa r t i e sa c t i nga t a r msl e ngt h.

Appl y i ngt hebe neti nk i ndc odec ont a i ne dwi t hi nt heI nc ome T a x( E a r ni ngsa ndPe ns i ons ) Ac t2003( “ I T E P A2003” ) , t heF TT f oundt ha tt hec a r swe r ei nde e dpr ov i de dbyv i r t ueof t hedi r e c t or ’ se mpl oy me nta ndnott he i rme mbe r s hi pof t hepa r t ne r s hi p.

Comment

Loanst oPar t i c i pat or s T hel oa nt opa r t i c i pa t ora nt i a v oi da nc er ul esa r ec ont a i ned wi t hs 455oft heCor por a t i onT a xAc t2010( CT A2010) .

T her ul es br oa dl ya ppl ywher eac l os ec ompa nyora na s s oc i a t ema k esa l oa nora dv a nc et oapa r t i c i pa t or .

T hev a l uea t t r i but edt ot ha t l oa nora dv a nc edi nc ur sa25%l ev ywhi c hi spa y a bl ewi t ht he c or por a t i ont a x( “ CT” ) l i a bi l i t yf ort heper i odi nques t i oni fi ti s notr epa i dbyt het i met heCTba l a nc i ngpa y menti sdue( nor ma l l yni nemont hsf ol l owi ngt heendoft hea c c ount i ng per i od) .

T hedeni t i onswi t hi nt hes 455ets eql egi s l a t i onha v ea l wa y s beenpur pos el ydr a f t edwi del y .

Ac l os ec ompa nyi sonec ont r ol l edby v eorf ewerpa r t i c i pa t or s .

Connec t edper s ons( i . e . hus ba nda ndwi f e) us ua l l yc ounta sonepa r t i c i pa t or .

Apa r t i c i pa t ori nc l udesa nyper s on( ora nyper s onc onnec t edwi t h t hem) wi t ht hea bi l i t yt oenj oyt hepr ot sora s s et soft hec ompa ny ; i ti snotmer el yl i mi t edt os ha r ehol der s .

Al oa nora dv a nc epr ov i dedt oapa r t nerofapa r t ner s hi pwher e i ti spos s i bl et ot r a c et hos ef undsba c kt oac onnec t edc ompa nyha sa l wa y sbeena tr i s kofbei ngc a ughtbys 455.

T heF i na nc eAc t2013a mendment st ot hel egi s l a t i onputbey ond doubtt ha ts uc ha r r a ngement swoul da t t r a c ts 455c ha r ges .

T he c ha r gec oul da ppl ywher ev ert her ei sv a l uee x t r a c t edf r om t he c ompa nya ndt r a ns f er r edt oapa r t nerwi t houtac or r es pondi ng i nc omet a xors 455c ha r ge .

T hec a s ede c i s i onwhe ni twa sa nnounc e dr e s ul t e di na n i mme ns ea mountof r e v i e wa ndc or r e c t i ona l a c t i v i t y .

Bya nd l a r ge , t hepr of e s s i ons e e mst oha v ec a pi t ul a t e dt ha tc a r spr ov i de dt hr oughpa r t ne r s hi psa r eanogowhe r epa r t ne r sa r ea l s o i nv ol v e di nc ompa ni e st ha ta r ec or por a t eme mbe r sors ome howc onne c t e dt ot heL L P .

Ma nya c c ount a nt sa nda dv i s or s s i mpl ys t a t et ha tpa r t ne r sc a nnotha v ev e hi c l e spr ov i de dbyt he L L Pwhe r et he r ei sa l s oi nv ol v e me nti nac ompa ny .

I ts houl dber e me mbe r e dt ha tt heCoope rc a s eout l i ne da bov e i nv ol v e daL L Pwi t hnoot he rr e a l c omme r c i a l a c t i v i t yout s i dei t s r e l a t i ons hi pwi t ht hec ompa ny .

Whe r epa r t ne r sa r ea c t i ngf ora L L Pwhi c hha si t sowni nde pe nde ntr e v e nues t r e a m wi t hunc onne c t e dpa r t i e s , t hepa r t ne r sa r ea c t i v e l yi nv ol v e di npr omot i ngt hebus i ne s sof t heL L Pa ndr e c e i v eas ha r eof t heL L P’ spr of i t s , t he r es houl dbenor e a s ont opr e v e ntv e hi c l e sbe i ngpr ov i d e dt ot hepa r t ne r sbyt heL L P .

Pr ov i de dt hepa r t ne r sdonote x t e ns i v e l yus et hev e hi c l e sont he bus i ne s sof c onne c t e dc ompa ni e st he yort heL L Pa r ec onne c t e dt o, t he r es houl dbenoi s s ue .

T hi sma ya c t ua l l ypr ov et obe pr a c t i c a l l yi mpos s i bl ea ndt he r ewoul dc l e a r l ybes omemuddy i ngof t hewa t e r swhe r ei ndi v i dua l sa r ei nv ol v e di nt woormor e bus i ne s s e s .

Asa l wa y s , t hede v i l i si nt hede t a i l a ndt hes ubs t a nc eof a r r a nge me nt sne e dst obea na l y s e dt os e c ur et hec or r e c tt a x pos i t i on.

11

Ne ws l e t t e r Cl as s2Nat i onal I ns ur anc e Cont r i but i ons( “ NI C” )and par t ner s hi ps–ac ur i ousaffai r ?

T hec ha ngeofv i ewdoess t r i k eusa sal i t t l epec ul i a r , s i nc et he Pa r t ner s hi pAc tha sbeenk noc k i nga r ounds i nc e1890a nd Na t i ona l I ns ur a nc es i nc e1911.

Atwor s ti tt ookov er100y ea r s a nda tbes tov eradec a det ounder s t a ndl a wa ndt a x esHMRC wa si nt r i ns i c a l l yi nv ol v edi nes t a bl i s hi ng.

Ok a y , s oc l a s s2NI Cdoe s n’ ts e tt het a xmi nda l i ghta ndi tc oul d be c omeat hi ngof t hepa s ti f r e c e ntr umour sa r et obebe l i e v e d.

Whi l s tt hi sa r t i c l edoe sc ov e ra ni s s ues ur r oundi ngc l a s s2NI C, i t a l s ode mons t r a t e st hec onf us e dmi x e dme s s a ge swi t hi ns t a t ut e , HMRCgui da nc ea ndunde r s t a ndi ng.

I thi ghl i ght st hene e df or gov e r nme ntpol i c ya ndHMRCt obec l e a r e roni nt e r pr e t a t i onof t hel a wa ndt hedeni t i onswi t hi ni t .

T oa ddf ur t herc onf us i on, f ol l owi ngt hec ha ngeofHMRC’ sv i ew, i ndi v i dua l si nv ol v edi nor di na r ypr oper t ypa r t ner s hi pss ubs equent l yr ec ei v eddema ndsf orc l a s s2NI C. T hi si nc l udeda numberofourownc l i ent sa ndwhenHMRCwer ec ha l l enged ont hepoi nt , t heys ugges t edt ha tapa r t ner s hi pi ndi c a t edmor e t ha napa s s i v ebus i nes s , a ndt her ef or ec l a s s2NI Cs houl dbei n poi nt .

Cl a s s2NI Ci sc ha r ge da tawe e k l ya tr a t eof £2.

80( 2015/ 16) a nd a ppl i e st oi ndi v i dua l s“ ga i nf ul l ye mpl oy e d” a ss e l f e mpl oy e d e a r ne r s .

Ani ndi v i dua l c a r r y i ngonal et t i ngbus i nes si nt hei rownc a pa c i t yha sa l wa y sbeenc ons i der edout s i det hes c opeofc l a s s2NI C a ndt hi si sdemons t r a t edi nc a s el a w.

I nRa s hi dvGa r c i a[ 2003] , t het a x pa y er( a ni ndi v i dua l ) a c t ua l l ya r guedt ha tal i a bi l i t yt o c l a s s2a r os e , whi l et her ev enuec ons i der edt ha tapr oper t yl et t i ngbus i nes sdi dnotc ons t i t ut eas el f empl oy eda c t i v i t y .

T he s pec i a l c ommi s s i oner sdec i dedi nf a v ourofHMRCa ndnoc l a s s 2NI Cwa sc ol l ec t ed.

Cl a s s2NI Cdoe snotc ountt owa r dss oc i a l s e c ur i t ybe nete nt i t l e me nta l t houghi tdoe ss e c ur es t a t epe ns i one nt i t l e me nt .

I ti st he c he a pe s twa yt os e c ur eas t a t epe ns i on.

Awe a l t hyl a ndl or dwi t has ubs t a nt i a l pr ope r t ypor t f ol i oc oul d s e c ur eas t a t epe ns i onj us tbybe c omi ngama r k e tga r de ne r ; not t hemos te x c i t i ngpl a nni ngpoi nt …

Cl a s s4NI Ci sc ha r ge da sape r c e nt a geof s e l f e mpl oy e dpr ot s .

F or 2015/ 16t her a t e sa r e9%onpr ot sbe t we e n£8, 060a nd£42, 385 a nd2%onpr ot si ne x c e s sof £42, 385.

On4Apr i l 2013, HMRCa nnounc e dac ha ngei ni t sv i e wont he t r e a t me ntof s l e e pi nga ndi na c t i v epa r t ne r si nL i mi t e dPa r t ne r s hi ps s ot ha ts uc hpa r t ne r sbe c a mel i a bl et opa yc l a s s2a ndc l a s s4NI C. I nt he i ra nnounc e me nt , HMRCs t a t e dt ha tt he yc ons i de r e dt ha t s l e e pi nga ndi na c t i v epa r t ne r sha da l wa y sbe e nl i a bl et oc l a s s2 a nd4NI C, a l t hought he ywoul donl ye nf or c ec ol l e c t i onf r om 6 Apr i l 2013.

F orma nyi na c t i v ea nds l e e pi ngpa r t ne r s , al i a bi l i t yt oc l a s s2or4 NI Cwi l l nota r i s ei f t hepa r t ne ri s : -gr a nt e dt hes ma l l e a r ni nge x e mpt i on; -a bl et oc l a i m de f e r me nti nr e s pe c tof ot he rc ont r i but i ons( c l a s s 1a nd4) ; -ov e rpe ns i ona ge ; -unde rs i x t e e n; -ama r r i e dwoma norwi dowwi t hr e duc e dl i a bi l i t y ; or -i nr e c e i ptof pr ot sof l e s st ha n£8, 060f orc l a s s4pur pos e s .

HMRCs uppor t e dt he i rv i e wbyr e f e r e nc i ngt heS oc i a l S e c ur i t yCont r i but i onsa ndBe net sAc t1992whe r eal i a bi l i t yt oc l a s s2a r i s e s whe na ni ndi v i dua l i sga i nf ul l ye mpl oy e da sas e l f e mpl oy e d e a r ne r .

Unde rt he1890Pa r t ne r s hi pAc t , apa r t ne r s hi pe x i s t swhe r epe r s onsa r ei nbus i ne s st oge t he rwi t hav i e wt or e a l i s i ngapr ot .

An i ndi v i dua l i nv ol v e di napa r t ne r s hi pwoul dt he r e f or ebes e l f e mpl oy e da ndl i a bl et oc l a s s2NI C.

I nt hec a s edes c r i beda bov e , t het a x pa y erunder t ookas i gnic a nta mountoft hea c t i v i t yi nt hebus i nes s ; f ore x a mpl eor ga ni s i ngr epa i r sa ndpr epa r i ngt ena nc ya gr eement s .

T hi swa snot enought os a t i s f yHMRCt ha tabus i nes se x i s t ed.

Byc ont r a s t , a numberofourc l i entpr oper t ypa r t ner s hi psus et hes er v i c esof ma na gementa gent sa ndt hepa r t ner sunder t a k ei nl i t t l eda yt o da ya c t i v i t yi nt hebus i nes s .

Doest hi sc a s tas ha dowov er whet hert her er ea l l yi sapa r t ner s hi p?

E v enmor eper pl e x i ngi sama t t erwedea l twi t haf ewy ea r sa go, wher eapr oper t ypa r t ner s hi punder t ookdev el opmenta c t i v i t y a ndt henl etors ol dt hepr oper t y .

T ot hec l i ent sa ndus , t hi swa s mor et ha napa s s i v ei nv es t menta c t i v i t y , a ndt her ef or et hei ndi v i dua l si nv ol v edwer ewi t hi nt her emi tofc l a s s2NI C…. . nots o a c c or di ngt oHMRC. T hej ewel i nt hec r ownt oa ddi ns ul tt oi nj ur yi st ha tHMRCha v e a c t ua l l ya nnounc eda ndi nt r oduc eda mendment st ol egi s l a t i on t ha tf r om 6Apr i l 2015, pr oper t ypa r t ner s hi psa r enotwi t hi nt he s c opeofc l a s s2NI C, s owea r eba c kwher ewes t a r t ed.

Wha ti s c l ea rt oust hough, i st ha tev enHMRCa r enotc l ea ronwha t c ons t i t ut esa“ bus i nes s ” or “ s el f empl oy ed“ a c t i v i t ya ndt hi sha s c ons equenc esi not hers i t ua t i onss uc ha sbus i nes spr oper t y r el i eff ori nher i t a nc et a xpur pos esa ndi nc or por a t i onr el i eff or c a pi t a l ga i nst a xpur pos es .

Cl a s s2NI Ci sa mongt hes ma l l es toft a xl i a bi l i t i esa ndf ort he s umsi nv ol v ed, a nypa r t neri napr oper t ypa r t ner s hi pwi s hi ng t oc ha l l engeHMRConwhet hert hel i a bi l i t ye x i s t s , wi l l be a dv i s edt opa yt hec l a s s2l i a bi l i t yf ort het woy ea r si ta r i s es , s i nc epr of es s i ona l f eest ogot ot r i buna l wi l l mos tl i k el ye x c eed t hea c t ua l l i a bi l i t y .

F i na l l y , on15Ma r c h2015, HMRCa nnounc edt hei ri nt ent i ont o e x t endt hec l a s s2a nd4t r ea t mentt os l eepi nga ndi na c t i v e pa r t ner si nL i mi t edL i a bi l i t yPa r t ner s hi ps ; s oma y bewe ’ r ea bout 12 t os t a r ta l l ov era ga i n…

Ne ws l e t t e r HMRCCons ul t at i on10 Dec ember2013 HMRCi s s ue di t s ndi ngsof ac ons ul t a t i onof 10De c e mbe r2013 a nds ubs e que nt l yl e gi s l a t e dont woa s pe c t sof wha tha dbe c ome f a i r l yc ommonl i mi t e dl i a bi l i t ypa r t ne r s hi p( “ L L P” ) t a xpl a nni ng.

T he me a s ur e swe r ei nt e nde dt or e s t r i c twha tHMRCr e ga r de da suna c c e pt a bl et a xa v oi da nc e .

Di s gui s edEmpl oyment T he r s tme a s ur ewa sa i me da tdi s gui s e de mpl oy me ntr e l a t i ons hi ps .

Bywa yof ba c k gr ound, apr of e s s i ona l s e r v i c e sr m ope r a t i ng v i aaL L Ps t r uc t ur ewoul dof t e ni nv i t ea ne mpl oy e et obe c omea s e l f e mpl oy e dpa r t ne ronc et he ya c hi e v e dc e r t a i nt a r ge t s .

T hea i m woul dbet or e t a i nt hei ndi v i dua l byi nc e nt i v i s i ngt he mt oha v ea v e s t e di nt e r e s ti nt hes uc c e s sof t hepa r t ne r s hi p.

I twoul dnor ma l l y bea nt i c i pa t e dt ha tt hepa r t ne rwoul dde v e l opne wbus i ne s sa nd i nc r e a s epr ot a bi l i t y( a ndt he r e f or et he i rdr a wi ngs ) .

Onl yt i mewi l l t el l i fs ma l l erL L P’ s ndt hems el v esi na dv er t ent l y c a ughtbyt her ul es .

Pr o torLos sal l oc at i on T hes ec ondmea s ur ewa st ot a r geta r r a ngement swher epr ot s a ndl os s eswer ea l l oc a t edi nat a xeffic i entma nneri nami x ed pa r t ner s hi p.

Des pi t ei t smi s l ea di ngna me , ami x edpa r t ner s hi p i sonewhos emember sa r enota l l i ndi v i dua l s .

S o, apa r t ner s hi p whos emember sa r ea l l c ompa ni esi ss t i l l ami x edpa r t ner s hi p a ndt her ef or et hec ompa nyowner sa r ewi t hi nt henewa nt i a v oi da nc el egi s l a t i ona ppl i c a bl et omi x edpa r t ner s hi ps .

Pa r t ner s hi psa r et r a ns pa r entf ort a xpur pos es , s oi ndi v i dua l pa r t ner sa r el i a bl et oi nc omet a xa ndNI Ca tt hei rma r gi na l r a t es .

Cor por a t emember spa yc or por a t i ont a xont hei rs ha r eof pr ot s .

Cor por a t i ont a xr a t esa r egener a l l ymor ef a v our a bl e t ha ni nc omet a xr a t es , s owher epr ot sc a nbea t t r i but edt oa c or por a t epa r t ner , t heywoul dbea nds hel t er edf r om t he hi ghera nda ddi t i ona l r a t esofi nc omet a xt ha ta ni ndi v i dua l woul ds uffer .

I nt hi ss c e na r i o, at a xa dv a nt a gewoul da l s obea c hi e v e df ora l l pa r t i e ss i nc et hepa r t ne r s hi pwoul dnol onge rha v ea ne mpl oy e r ’ sna t i ona l i ns ur a nc ec ont r i but i on( “ NI C” ) l i a bi l i t ya ndt hepa r t ne r woul dnol onge rha v ea ne mpl oy e e ’ sNI Cl i a bi l i t y , bea bl et oc l a i m a ddi t i ona l e x pe ns e swi t houtbe neti nk i ndi s s ue sa nda c hi e v e s omet a xde f e r me ntbyha v i ngbi a nnua l obl i ga t i ons , r a t he rt ha n mont hl y .

T hi ss c ena r i oa l l owedi ndi v i dua l pa r t ner st obet a x edonl yon t hei ra c t ua l dr a wi ngsa nde x c es spr ot st obet a x eda tl ower c or por a t i ont a xr a t esa nd“ wor k i ngc a pi t a l ” t ober et a i nedi nt he pa r t ner s hi p.

Howev er , i ta l s oa l l owedt heea r ma r k i ngofpr ot s f ors pec ici ndi v i dua l swhi c hc oul dt henbee x t r a c t edt a xeffic i ent l yi nt hef ut ur e .

S o, t hea bov es c e na r i ogi v e sa ni mpr e s s i onof s omec ont r ol a nd powe rwi t hi nt hepa r t ne r s hi pa ndac ont r a s t i nge l e me ntof r i s k wi t hs omet a xa dv a nt a ge s .

Onec oul di ma gi nea ni ndi v i dua l we i ghi ngupt her i s ka ndpot e nt i a l r e wa r dsof s e l f e mpl oy me nt .

T henewr ul esa l l owHMRCt or ea l l oc a t epr ot sa ndl ev yi nc ome t a xa ndNI Ca sa ppr opr i a t eoni ndi v i dua l member swher ei ti s det er mi nedt ha tt hepa y mentofpr ot st oot hermember si sa n a r t ic i a l di v er s i onf ort a xa v oi da nc epur pos es .

Asma na ge ds e r v i c ec ompa ny , i nt e r me di a r ya ndI R35l e gi s l a t i on e v ol v e d, r e c r ui t me nta ndot he rbus i ne s s e sbe ga nt oa doptL L P s t r uc t ur e st obr i nggr oupsof i ndi v i dua l st oge t he ra ss e l f e mpl oy e d pa r t ne r s .

I nt hi sc ont e x t , t hei ndi v i dua l s i mpl yha dt ober e gi s t e r e d a same mbe ra ndt he ywoul dber e ga r de da sapa r t ne r ; t he ywoul d nor ma l l yha v enos a yi nope r a t i ona l ma t t e r s .

I ti si mpor t a ntt onot et ha tHMRCma yonl yi nv ok et her ul es wheni ti sr ea s ona bl et os uppos et ha tt hepr ot st a x eda ta l owerr a t ea r ei nf a c ts hel t er edpr ot sofa ni ndi v i dua l member whi c hwoul dot her wi s ebet a x a bl ea tahi gherr a t e .

F ur t her mor e , t her ul esdonota ppl yi ft hepr ot swhi c ha r et a x eda ta l owerr a t ea r ea l l oc a t edonc ommer c i a l t er ms ; i . e . i npr opor t i on t ot hec a pi t a l c ont r i but i ona nd/ ors er v i c espr ov i dedt ot heL L P .

T hee ffe c tof t hedi s gui s e de mpl oy me ntr ul e swa st obr i ngt hos e i ndi v i dua l sr e gi s t e r e da sme mbe r sof aL L P( butwi t hnos a yov e ri t s ope r a t i on) wi t hi nt hes c opeof P AYEa ndt oa ppl ye mpl oy e r sNI Ct o t hepa y me nt sf r om t heL L Pf r om Apr i l 2014.

AL L Ppa r t ne ri sbr oa dl ywi t hi nt hedi s gui s e de mpl oy me ntr ul e si f t he y : -i ne s s e nc er e c e i v ea tl e a s t80%of t he i ri nc omet hr ough x e d s a l a r ya r r a nge me nt s ; -ha v enos i gnic a nti n ue nc eov e rt heL L P’ sope r a t i on; a nd -ha v enotc ont r i but e da na mounte qua l t o25%of t he i r e a r ni ngst ot heL L Pc a pi t a l .

Al l t hr e ec ondi t i onsne e dt obeme tf ort hedi s gui s e de mpl oy me nt r ul e st obeme t .

Anypa r t ne ri naL L Pwhoi st r ul ys e l f e mpl oy e d s houl dnotbec a ught , e v e ni f t he yha v enotc ont r i but e dc a pi t a l .

I ti si mpor t a ntt onot et ha tt hel egi s l a t i ondoesnota ppl ywher e a r r a ngement sa r eongenui nea r m’ sl engt ht er msort her ei sno i nf or ma l ( orot her wi s e) a l l oc a t i onofac or por a t emember s pr o ts ha r epr ov i dedt hepr o ts ha r ea l l oc a t i oni sbyr ef er enc e t ot hev a l ueofc a pi t a l c ont r i but eda nd/ ors er v i c espr ov i ded.

Wher ei ndi v i dua l pa r t ner sa r ea l s opa r t i c i pa t or si nt hec or por a t epa r t ner s , t heywi l l needt or ev i ewt hea r r a ngement s .

T her e a r es omes i t ua t i onswher ei ti sea s yt of or es eei s s uesa r i s i ng t ha tmea naper f ec t l yc ommer c i a l a r r a ngement sa r ec a ught , s o c a r ei sneeded.

13

Ne ws l e t t e r Sel fAs s es s mentT axRet ur ns ( ” SATR” )f ori ndi vi dual s T heUKope r a t e sas y s t e m of s e l f a s s e s s me ntf ori ndi v i dua l s .

Mos tUKt a x pa y e r sa r ewi t hi npa ya sy oue a r n( “ P AYE ” ) orha v e t a xde duc t e da ts our c ef r om s a v i ngsa nda r enotr e qui r e dt o pr e pa r ea nds ubmi tt a xr e t ur ns .

Ani ndi v i dua l ma yne e dt o r e gi s t e rf ors e l f a s s e s s me nti f t he y : -r e c e i v eunt a x e di nc ome( r e nt a l i nc ome , s a v i ngsor i nv e s t me nt s ) ; -ha v es i gnic a nts a v i ngsa ndi nv e s t me nti nc ome ; -ha v ei nc omeof ov e r£100, 000; -ma deaga i nf r om t hes a l eof s ha r e s , pr ope r t yorot he r c ha r ge a bl ea s s e t s ; -we r eac ompa nydi r e c t or ; -r e c e i v ei nc omeof ov e r£50, 000a ndc l a i mc hi l dbe net ; -we r es e l f e mpl oy e d; -r e c e i v e di nc omef r om a br oa d; -l i v e da br oa da ndr e c e i v e dUKs our c ei nc ome ; -a r eahi ghe rora ddi t i ona l r a t et a xpa y e ra ndr e c e i v e d di v i de ndi nc ome ; -a r eat r us t e eof at r us torr e gi s t e r e dpe ns i ons c he me .

T he r ea r eot he rc i r c ums t a nc e swhe na ni ndi v i dua l ma yber e qui r e dt opr e pa r ea nds ubmi tt a xr e t ur ns .

HMRCwi l l us ua l l y wr i t et oa ni ndi v i dua l whe nt he ybe l i e v eas e l f a s s e s s me ntt a x r e t ur n( “ S AT R” ) s houl dbepr e pa r e d.I ti sul t i ma t e l yt het a x pa y e r ’ sr e s pons i bi l i t yt oe ns ur et he ynot i f yHMRCi f t he ys houl ds e l f a s s e s s .

I ti sa l s opos s i bl ef ors ome onewi t hf a i r l yba s i ca ffa i r st oc a l c ul a t ea nds e t t l ea nya ddi t i ona l t a xl i a bi l i t y( orr e pa y me nt ) e a c h y e a rwi t houtpr e pa r i nga nds ubmi t t i ngat a xr e t ur n.

T hi sc a nbe donebyl e t t e ra ndwoul dt y pi c a l l ya ppl yi ns i t ua t i onss uc ha s s ome onewi t honel e tpr ope r t yora ne mpl oy e ewi t hbus i ne s s r e l a t e de x pe ns e st ha ta r er e por t e donaP11D. HMR M Cha v ei nc r e a s i ngl ys ophi s t i c a t e dt ool sa tt he i rdi s pos a l i n or de rt oi de nt i f yi ndi v i dua l st ha ts houl dbes e l f a s s e s s i ngt he i r pe r s ona l t a xl i a bi l i t i e s .HMRC’ shi ghl ya dv a nc e da ndmuc h t a l k e da boutConne c ts y s t e mi sc a pa bl eof r e f e r e nc i ngba nk a ndot he r na nc i a l i ns t i t ut i onr e c or ds , Compa ni e sHous e , a nd t heL a ndRe gi s t r yt ona mej us taf e ws our c e sof da t at ha tHMRC us et os pota noma l i e si nt a x pa y e rbe ha v i oura ndr e por t i ng.

I ndi v i dua l ss houl ds e e ka dv i c ef r om as ui t a bl epr of e s s i ona l or HMRCi f t he ya r euns ur eof t he i rr e s pons i bi l i t i e s .

Regi s t er i ngf orSel f as s es s ment Re gi s t r a t i onf ors e l f a s s e s s me nti se a s i l ydoneonl i ne , a l t hough c a nbec ompl e t e dbyphoneorbypos t .

T her e gi s t r a t i onde a dl i nei s5Oc t obe rf ol l owi ngt hee ndof t he t a xy e a r .

Ani ndi v i dua l needsba s i cper s ona l i nf or ma t i ona ndt hei r Na t i ona l i ns ur a nc enumber , pl ust hedet a i l sofa nybus i nes s t heya r ei nv ol v edi n, t or egi s t er .

T her egi s t r a t i onpr oc es sc a nv a r yi ns omec i r c ums t a nc es ; f or i ns t a nc eas el fempl oy edpa r t nerwi l l needt oc ompl et ea S A401pa r t nerr egi s t r a t i onf or m.

Onc er egi s t er ed, a ni ndi v i dua l wi l l r ec ei v eauni quet a xr ef er enc enumber( UT R) .

HMRCwi l l s enda nnua l r emi nder st oc ompl et eaS AT R, a l t houghi ti st het a x pa y er s ’ r es pons i bi l i t yt o ens ur et hei ra ffa i r sa r eupt oda t e .

I ti sa l wa y sr ec ommendedt ha ta dv i c ef r om a na c c ount a ntor t a xa dv i s ori ss oughtpr i ort or egi s t er i ng.

Al t houghma nybel i ev et hepr oc es st obes i mpl e , i ti sea s yt omi s under s t a nd wha ti sa c t ua l l ynec es s a r ya ndi ti sus ua l l ypr udentt obepr of es s i ona l l yr epr es ent ed.

Fi l i ngDeadl i nes Apa perr et ur ns houl dbes ubmi t t edby31Oc t obera f t ert he endoft het a xy ea ri tr el a t est o.

Anel ec t r oni cr et ur ns houl dbes ubmi t t edby31J a nua r ya f t er t heendoft het a xy ea ri tr el a t est o.

I fa ni ndi v i dua l wi s hesa nyt a xa ndna t i ona l i ns ur a nc et obe c ol l ec t edt hr ought hei rP AYEc odet heys houl ds ubmi tt hei r t a xr et ur nby30Dec ember .

Non l i ngpenal t i es T axRet ur n

Amount

Oneda yl a t e 3mont hsl a t e Mor et ha n3mont hsl a t e 6mont hsl a t e 12mont hsl a t e

£100 £100 £10perda y Gr ea t erof£300or5%oft a xdue Gr ea t erof£300or70%oft a xdue ( 100%i fdel i ber a t ea ndc onc ea l ed) 14

Ne ws l e t t e r Paymentdeadl i nes Pa y mentofa nyt a xa ndna t i ona l i ns ur a nc ei sdueby31J a nua r ya f t ert heendoft het a xy ea rt hel i a bi l i t yr el a t est o.

Pa y ment sona c c ounta r er equi r edwher ea ni ndi v i dua l ha sa n a ddi t i ona l l i a bi l i t yi ne x c es sofÂŁ1, 000orov er80%oft het a xi s deduc t eda ts our c e , a ndt heyha v enots ubmi t t edby30 Dec emberr eques t i nga ddi t i ona l t a xt obec ol l ec t edt hr ough P AYE .

Nonpaymentpenal i t i es Payment

Amount

31da y sl a t e 6mont hsl a t e 12mont hsl a t e

5%ofl i a bi l i t y 5%ofl i a bi l i t y 5%ofl i a bi l i t y

Keepi ngpa per wor ki nor ga ni s edf ol der sorha v i ngel ec t r oni cr ec or dswi l l hel pna v i ga t edet a i l squi c k l ya ndhel ppr ev enter r or s a ndomi s s i onsofi mpor t a nti nf or ma t i on.

S omeoft hec ommon na nc i a l r ec or dsneededwhenc ompl et i ngaS AT Ra r e: -E mpl oy menti nc ome-P60/ Ma r c hPa y s l i pa ndP11D’ s ; -S el f empl oy menti nc ome-Det a i l sofi nv oi c es / i nc omea nd e x pens esi nc ur r ed; -Rent a l i nc ome-I nc omea nde x pens esr el a t i ngt ot he pr oper t y ; -Di v i dends Vouc her si s s ueddur i ngt hey ea r ; -S a v i ngs / ba nki nt er es t -Ba nks t a t ement s ; -F or ei gni nc omes t a t ement s ; -Pens i oni nc omea ndc ont r i but i ons ; -Redunda nc y / unempl oy mentbenet sr ec ei v ed; a nd -Ca pi t a l ga i nsondi s pos a l s .

Rec or dkeepi ngandAr easofRi s k

I ndi v i dua l ss houl dk eepper s ona l r ec or dsf ort went yt wo mont hsa f t ert heendoft het a xy ea rt heyr el a t et o.

S o, f ort he S houl dHMRCe nqui r ei nt oat a xr e t ur n, t hef a i l ur et oha v ea de - 2015/ 16t a xy ea r , r ec or dss houl dbek eptunt i l 31J a nua r y2018 qua t es uppor t i ngi nf or ma t i onc a nr e s ul ti nHMRCa me ndi ng pr ov i dedt her et ur ni ss ubmi t t edont i me .

Wher ea ni ndi v i dua l i s t hea mountof t a xduea ndi mpos i ngpe na l t i e sa ndi nt e r e s t . s el fempl oy edorot her wi s ei nbus i nes s , t hos ebus i nes sr ec or ds s houl dbek eptf ora tl ea s tv ey ea r s .

T a k i ngal i t t l ee x t r ac a r edur i ngt hey e a rt oma na gea nd l e r e c or dswi l l ma k et hepr e pa r a t i ona ndc ompl e t i onof r e t ur ns E r r or sormi s t a k esc a nbec os t l ya ndi ts houl da l wa y sbec ons i dl e s ss t r e s s f ul a ndt i mec ons umi ng. er edpr udentt oenga get hes er v i c esofapr of es s i ona l .

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Ne ws l e t t e r EdgeNews T axat i onawar dsupdat e Asa nnounc edpr ev i ous l y , t hi sy ea rwewer es hor t l i s t edf or “ Bes tT a xI nv es t i ga t i onsT ea m” i nt heT a x a t i on a wa r ds , whi c ht ookpl a c ei nt heHi l t ononPa r kL a ne , L ondon, onT hur s da y21s tMa y .

Al t houghwedi dnot wi nt hea wa r d, wewer edel i ght edt obes hor t l i s t eda st her ewer eahi ghl ev el ofent r i est hi sy ea ra ndwe wer et hes ma l l es tt ea mt obes hor t l i s t edi nt hi sc a t egor y !

Wea l l ha daf a nt a s t i cni ghta ndwoul dl i k et os a y wel l donet oa l lna l i s t sa ndwi nner s !

Ant on’ sGr eatWal l ofChi nat r ek I nMa y , Ant ont ookonhi sl a t es tc ha l l enget he“ Gr ea tWa l l ofChi nat r ek ” f orourc ha r i t yoft hey ea r ; Br a ndon T r us t .

Hej et t edofft oChi naa ndt r ek k edt heGr ea tWa l l c l i mbi nguphundr edsofs t epsa ndmount a i npa t hs ea c hda y !

Heha dl ong12hourda y sa ndwa sa l wa y sont hego!

Ant onf oundi tal otmor edi ffic ul tt ha n e x pec t edbutenj oy edt hee x per i enc ea ndhi st i mea wa yf r om t heoffic e!

Whenhea r r i v edhomea l l he wa nt edt odowa ss l eepbuti ns t ea dwa sba c ki nt heoffic et hef ol l owi ngmor ni ng!

Al t houghi twa s e x t r emel yc ha l l engi ngAnt onr ea l l yenj oy edt hee x per i enc ea ndi snowl ook i ngf orhi sne x tc ha l l enge!

Wewoul da l l l i k et os a yama s s i v ewel l donet oAnt onf ort a k i ngont hi sc ha l l engef orBr a ndonT r us t . ( S omephot ost ot her i ght ) .

Br a ndonT r us ta r eal oc a l c ha r i t ywhos uppor t si ndi v i dua l swi t hl ea r ni ngdi s a bi l i t i esa nda ut i s m.

F i ndout mor ea boutBr a ndonT r us ther e: ht t p: / / www. br a ndont r us t . or g/ Pl ea s es uppor tAnt ona ndhel pust or a i s ea smuc hmoneya spos s i bl ef ort hi sgr ea tc ha r i t y !

Y ouc a ns pons orhi m onhi sj us tgi v i ngpa geher e: ht t ps : / / www. j us t gi v i ng. c om/ E dgeT a x L L P2.

T ha nky ouf ory ourongoi ngs uppor t .

Ant on’ swr i t i ngs uc c es s F ol l owi ngt hepubl i c a t i onofAnt on’ st a xdi ges t “ Pr a c t i c a l i t i esof T a xI nv es t i ga t i ons ” byT ol l ey’ sea r l i ert hi s y ea r , a ndt hewr i t i ngofas ec ondt a xdi ges tont het opi cof “ a nt i a v oi da nc el egi s l a t i ona ppl y i ngt ooffs hor e s t r uc t ur esa ndODF ” t ober el ea s edi nNov ember , Ant onwa sa l s oa s k edt oc ont r i but et oT ol l ey’ sF i na nc e Ac tha ndbook2015ont het opi cof “ Pr omot er soft a xa v oi da nc es c hemes ” –a ga i nwel l doneAnt on!

Upc omi ngSemi nar s : Semi nar swi t hLeonar dCur t i sBus i nes sSol ut i onsGr oup I nJ ul yAnt onwi l l bes pea k i ngi ns emi na r shel dwi t hL eona r dCur t i si nCa r di ffa ndS wa ns ea .

Hewi l l be s pea k i ngont hes ubj ec tof “ Ri s ka ndI nt el l i genc eS er v i c e–I dent i f y i ngt a x pa y er sf ori nv es t i ga t i on” .

T he br ea k f a s ts emi na r swi l l a l s ogi v ea noppor t uni t yt onet wor ka nda r et a k i ngpl a c eon28t hJ ul ya ta nd29t h J ul y .

I fy oua r ei nt er es t edi na t t endi ngei t her , pl ea s ec ont a c tKi r s t y ; k da ni el @edget a x . c om.

Semi nar swi t hCent ur i onVAT I nS ept emberwewi l l behol di ngbr ea k f a s ts emi na r swi t hCent ur i onVATont hes ubj ec tofma na gi ngy our t a xa ndVATr i s k .

Cent ur i onVATa r ea nhi ghl ye x per i enc ed, a wa r dwi nni ngt ea m of VATs pec i a l i s t s .

T he s emi na r swi l l t a k epl a c ei nBr i s t ol ont he23r dS ept embera ndCa r di ff29t hS ept ember .

T or egi s t eri nt er es t , pl ea s eema i l Ki r s t y ; k da ni el @edget a x . c om.

EdgeT axI nves t i gat i onsLi nkedI nGr oup I fy oua r eamemberofL i nk edI na ndi nt er es t edi nt a xi nv es t i ga t i onsa ndt hel a t es tHMRCa c t i v i t y , pl ea s e f ol l owt hel i nkbyc l i c k i ngher et oourt a xi nv es t i ga t i onsL i nk edI ngr oupwher ey ouc a nbec omeamember f orf r eea ndr ec ei v er egul a rt i psa ndupda t es , a s ka nyques t i onsy ouha v ea ndt a k epa r ti ndi s c us s i onswi t h ot herpr of es s i ona l s .

Wehopey oue nj oy e dr e adi ngour ne ws l e t t e r andf oundi t us e f ul , i f y ouwoul dl i k et odi s c us sany t hi ngc ov e r e d i nt hi sne ws l e t t e r pl e as ege t i nc ont ac t .

I f y ouwoul dl i k et os ugge s t t opi c st obec ov e r e di nour ne x t ne ws l e t t e r or woul dl i k et of e at ur ei nour ne ws l e t t e r , pl e as ec ont ac t Ki r s t y ; k dani e l @e dge t ax . c om