HMRC have over the last 8 years offered taxpayers a number of HMRC disclosure Facilities.
Each facility has been very targeted and designed to encourage people in certain sectors to come forward and bring their tax affairs up to date where they have made mistakes. Sectors previously targeted by HMRC include, amongst others:
Most HMRC disclosure facility campaigns are targeted with a specific opening and closing date and many have already closed.
HMRC have stated that the purpose of each facility is to offer people (including Companies) a chance to get their tax affairs in order on the best possible terms. Prior to offering a disclosure facility, HMRC will conduct a large information gathering exercise (for example, getting information from letting agents on let property) using their extensive information powers. If people do not partake in the disclosure, HMRC have stated that they will use the information gathered to conduct follow up work. HMRC specifically say that this will include tax investigations and prosecutions.
There are a number of HMRC disclosure facility options still available at the moment including:
The let property campaign is an opportunity for landlords who owe tax through letting out residential property in the UK or abroad. Often people who let property do not realise that they have to declare this to HMRC whether or not they make a profit. It is our experience that when people take part in this HMRC campaign, there is little if any tax due as people are usually quite highly geared. Losses from earlier years can generally be used against profits that have been made due to the reduction in the interest rates post 2008.
This HMRC disclosure facility is for businesses whom accept payments by credit or debit cards and have not declared all their income in their accounts and tax returns. HMRC have approached Card Machine providers and banks to obtain reports of what payments have been made, and will be checking this against the turnover of the businesses.
This campaign is aimed at people who are in employment and have a second income from a self-employed source. Examples given by HMRC of this self employed income relates to things like party planning, taxi driving, consultancy and fitness training.
HMRC have stated that this disclosure facility is the last chance for people who have not paid all of their tax on overseas income, or who have funds overseas as a result of UK tax evasion, to put matters right. Due to various agreements between the G20 countries and "tax havens", HMRC will shortly start to receive significant amounts of information relating to individuals who have investments or accounts abroad where there is a link to the UK.
The Worldwide disclosure facility does not offer particularly good terms and for those with overseas issues relating to their UK tax affairs it is probably best to take part in the Contractual Disclosure Facility.
HMRC's literature suggests that completing the forms is relatively easy. To deal with matters properly, an individual needs to understand tax law and accounts.
HMRC's suggested time line from start to finish for the HMRC disclosure facility arrangements is 3 months. Payment of any tax due is also expected at the 3 month period. This is a very difficult time line and although it can be managed it needs the involvement of people who are familiar with dealing with the HMRC disclosure facility.
The forms and guidance given in the HMRC disclosure facility arrangements are not very well designed and can cause confusion where a number of different taxes are involved.
Gilbert Tax understands that people sometimes make mistakes in their dealings with HMRC and that HMRC make mistakes in dealing with taxpayers. Many people do not know how to deal with HMRC or who to turn to for help resolve the tax dispute.
Gilbert Tax is a firm of tax advisors who specialise in resolving people's problems with HMRC. We have extensive expertise in dealing with all forms of tax investigations and tax disputes as well as with taking matters to the Tax Tribunal where agreement cannot be reached.
Gilbert Tax deal both directly with the individual who is under enquiry and also work with many firms of accountants supporting them in dealing with HMRC disputes and advising them on how to handle HRMC to get the best result.
The fact is that proper management of HMRC is the best way of reducing the tax, interest and penalty as well as the time taken in resolving any tax dispute.
Gilbert Tax are none judgemental and rigorously defend your position within the scope and parameter of the law. We take control and manage the process to minimise the interruptions that any form of tax investigation causes to an individual's life and business.
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