HMRC has lost many staff over recent years and will continue to do so. However, this loss of personnel is more than compensated for by increases in the level of powers of HMRC and the information available HMRC. Many officers of HMRC appear to believe their powers are now unlimited while the organisation itself attempts to find new ways of circumventing the few remaining restrictions on its powers imposed by Parliament.
HMRC has spent considerable sums on information systems to acquire the so called Big Data. The use of this Big Data will increase substantially and many investigations will be opened in consequence. Data will be collected both in the UK and overseas from multiple sources. HMRC has access to a surprisingly wide range of databases and statistical analysis will automatically draw inferences from the data collected.
The probability of an investigation of one form or another will increase. The onus will, in practice, inevitably be on the taxpayer to prove innocence contrary to the legal position. It will be very difficult to convince HMRC the data is wrong even though experience of it so far has suggested this will frequently be the case. A robust defence will be required. Increasingly draconian penalties will be sought by HMRC to settle cases in the absence of a suitable defence.
Appropriate representation should be sought as soon as there is any suggestion of any form of action by HMRC.
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It isn’t always possible to reach agreement with an investigating officer for a variety of reasons. Disputes can spiral out of control and clients may find themselves at a tribunal hearing with the attendant costs when such a hearing could have been avoided. Alternative Dispute Resolution is often a cheaper and simpler means of resolving a dispute with HMRC. However, even this relatively informal process should not be undertaken without advice.
The introduction of the Common Reporting Standard will ensure HMRC have far more information from overseas and will initiate many more enquiries as a result. Under this initiative, the financial institutions of over one hundred countries will automatically send information to HMRC in 2017 and subsequent years.
Immediate action is required whenever such an allegation is made. Any affected person should seek the advice of a person experienced in this field. Advice from persons outside this highly specialist area may make matters worse.
HMRC are generally more forgiving to those who bring errors to their attention so voluntary disclosure is often better than waiting for HMRC to enquire. A voluntary disclosure must be well organised and carefully managed so is not a matter for the inexperienced. The introduction of the statutory requirement to correct any errors arising from overseas income or gains should be borne in mind. Penalties of 300% may be levied in certain circumstances. A Worldwide Disclosure Facility will be available until 30th September 2018. It may be best to take advantage of this facility as it is likely to be the last of its kind.
MHA MacIntyre Hudson is fortunate enough to have many staff and partners of many years experience who can provide authoritative expert witness services. Expert witnesses are available in a wide variety of fields including valuation and forensic accounting.
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Nigel was previously an HMRC Inspector and has worked in the Big 4 for 18 years before joining MHA MacIntyre Hudson in January 2017. His experience includes work on a range of employment tax matters for a range of major national and international businesses as well as SME and OMB businesses. This includes work primarily in the Automotive, Hospitality & Leisure, Logistics and Construction sectors.
Nigel has aided clients in managing employment tax risk and mitigating HMRC settlements, as well as spending a considerable amount of time designing, implementing and communicating arrangements to reduce employment tax cost. He has worked on a large number of car consulting projects, including the development and design of bespoke arrangements for clients, including ECOS, Salary sacrifice and Hybrid fleet arrangements. He is a member of the Association of Taxation Technicians.Get in touch with Nigel Morris
Fiona joined MHA MacIntyre Hudson in 2018 following the merger of her previous firm.
She has over 14 years’ experience working in the accounting industry and is both a Chartered Accountant and Chartered Tax Advisor, providing her with unique insight into helping Owner Managed Businesses and Entrepreneurs develop and grow their companies.
Fiona has considerable experience helping her clients put in place cloud accounting systems and enabling them to utilise the information generated to make business decisions. As well as advising her clients on potential tax planning strategies that are relevant to them, including EIS scheme set ups, research and development, inheritance tax planning, and family investment companies, empowering Entrepreneurs to fulfil their business goals in the most tax efficient way possible.
Additionally, Fiona has extensive experience advising individuals and companies under HMRC investigation.
Fiona takes pride in helping local businesses connect and grow together and she is a proud winner of Kent Women in Business Award ‘Woman in Finance’ 2017.
In her spare time she enjoys time in the countryside or on the beach with her partner and two dogs.Get in touch with Fiona Howard
The relationship with MHA MacIntyre Hudson has always been a solid one. The team are able to respond quickly to problems and achieving timescales. Their international network, Baker Tilly International, gives them breadth and the ability to cover overseas issues. - PRISYM ID
The team at MHA MacIntyre Hudson have taken away the burden of the day to day bookkeeping, payroll and CIS work off me. This has enabled me to spend more time working on my business, finding new work, new ideas and ways to be more profitable. Thanks to the help I’ve received, I can see a bright future for me and my company. Luke Day - Complete Wiring Solutions