We advise on HMRC enquiries, tax disclosures and tax disputes with a view to finding cost effective solutions.
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An individual who had deliberately failed to declare consultancy fees as well as operate PAYE on his housekeeper’s salary sought Crowe’s advice. Our client was an accountant, hence rightfully concerned that HMRC might seek to prosecute him for tax fraud. We recommended he make a request to participate in the Contractual Disclosure Facility in order to secure immunity from prosecution. Given the specific nature of the issues, Crowe managed to agree with HMRC that it would not be necessary to complete a full blown CDF report, which significantly reduced the amount of time and cost involved in reaching settlement with HMRC.
We were contacted by an individual who received an enquiry notice into a recent tax return. We noted that HMRC were asking some very specific questions indicative of there being suspicions that larger problems existed. While our client was initially reluctant to discuss the wider issues, we convinced him that it was in his best interests to make a full disclosure, not least because we had analysed publicly available data that pointed towards numerous issues which HMRC would of course already be aware of. The client has since informed us there are numerous inaccuracies, which result in tax liabilities in excess of £1.5 million. We have therefore registered the client for the Contractual Disclosure Facility in order to protect him from prosecution. Furthermore, the act of making a full disclosure will ultimately reduce our client’s exposure to penalties.
HMRC’s nudge letter campaign has resulted in numerous individuals and accountants getting in touch with Crowe for advice and support regarding how to make a full disclosure in respect of foreign income and gains. We have helped our clients navigate the complex rules in respect of how many years are assessable and what penalty rates will be applied.
We have also helped our clients ensure that a full disclosure is being made to HMRC in order to reduce the risk of follow up questions. One of the most important factors we have helped our clients with is determining whether there is a reasonable excuse for failing to correct their historic tax position before 30 September 2018, otherwise penalties ranging between 100-200% of the lost tax become due.
A large organisation approached Crowe’s Employer Advisory Group (EAG) to discuss potential errors in respect of claims made via the Coronavirus Job Retention Scheme (CJRS).
The rules are extremely complicated and so there are numerous pitfalls which can reduce an employer’s entitlement to the funds. Our EAG colleagues identified a number of issues and worked closely with Tax Resolutions to make a disclosure to HMRC.
Great care was taken to provide explanations about why the mistakes arose in order to protect our client from the high penalties that can apply. We know from the recent budget that additional funding and HMRC officers will be made available to scrutinise and challenge claims made under the CJRS and the Self-Employment Income Support Scheme. We therefore recommend that professional advice is taken at the earliest opportunity.
In the final episode of our Tax Resolutions podcast series, Hayley Ives and John Cassidy talk us through ‘furlough fraud’ that has become apparent under the COVID-19 government support schemes. They focus on the complexities of the furlough fraud scheme, what happens when errors are uncovered and how the government are going about recouping wrongly claimed payments.
In this episode of our Tax Resolutions podcast series, Sean Wakeman and Hayley Ives give us a detailed summary of Financial Institution Notices (FIN). They discuss whether the concept of FIN is similar to third-party data requests, whether a financial institution can resist a notice and if concern has been expressed about HMRC’s enhanced powers. They also touch on the adverse effects this could have on taxpayers and why the notices need to be treated with care.
In the next episode, Mark Ayre, Director and John Cassidy, Partner in our Tax Resolutions team talk us through some of the common myths surrounding #HMRC enquiries and highlight some key points that you should be on the lookout for. They also discuss what issues arise when moving towards the completion of an enquiry.
In the next episode of our Tax Resolutions podcast series, Sean Wakeman, Partner, and Mark Ayre, Director, give us an overview of the Code of Practice 8 (COP8), explaining how it differs to a local tax office enquiry and what specific issues would usually come under the COP8.
In the next episode of our Tax Resolutions podcast series, Sean Wakeman, Partner, and Mark Ayre, Director, discuss the Code of Practice 9 (COP9) and the ins and outs of the process. They cover how long an individual has to act on a COP9 letter, whether they are inclined to accept it and if going through the COP9 process makes an individual immune from prosecution.
In this episode of our Tax Resolutions podcast series, Sean Wakeman, Partner, and Ian Shirley, Director, talk us through what the Let Property Campaign (LPC) is, who the facility is available to and how penalties under the facility work. They also discuss the advantages and disadvantages of using the LPC and if it is the right route for deliberate cases.
In this episode, Mark Ayre and Ian Shirley, Directors in our Tax Resolutions team give us an overview of what the Worldwide Disclosure Facility (WDF) is, how to go about making a disclosure and who qualifies to use it. They also discuss the best way to reduce a penalty and whether those with deliberate or fraudulent cases should still use the WDF.
John Cassidy, Partner and Hayley Ives, Director discuss time limits for HMRC to raise investigations. They cover the different time limits and categories for HMRC to raise assessments, the new rules for assessment windows in connection with offshore matters and explore the question of if additional tax is assessable, will this lead to a penalty?
In the first podcast of the series, Ian Shirley, Director and John Cassidy, Partner in our Tax Resolutions team cover the concept of ‘reasonable excuse’. They discuss what reasonable excuse is, why it is important to know whether your client did or did not have one and what HMRC’s stance is on reasonable excuse arguments. The team also share examples of where Crowe have recently argued reasonable excuse.
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