HMRC

VAT Invigilations - When best judgement isn’t even good Anyone who has only been involved with tax since 2005 might not be aware that prior to that point, rather than there being one HM Revenue and Customs, there had been...

The Disappointment of Winning

Our firm recently won a case at the Tribunal or, to use the more formal language of the Courts, the Tribunal decided a case in favour of our client. You would think that we would be celebrating – but we...

IGNORING THE CCO CAN BE A RISKY BUSINESS

Recent changes in HMRC’s Risk Assessment process means that a company or partnership that fails to address the Corporate Criminal Offence (CCO) requirements could find themselves facing annual enquiries into their tax affairs. The CCO legislation was introduced just over...

Tax investigations; getting out of the rut

It is a truth universally acknowledged that HMRC Tax Investigations can often take far too long to be resolved. Not only can it often take many months if not years to establish all of the facts upon which to base...

Deliberate penalties – what’s in a word?

As the public profile of tax compliance continues to grow, HMRC is increasingly under pressure to demonstrate that it is cracking down on tax evasion. This can be achieved through issuing larger numbers of penalties for the more serious failures...

Follower Notice unlawfully issued

Mazars on behalf of their client G Haworth have successfully persuaded the Court of Appeal that HMRC unlawfully issued a Follower Notice to their client (Link). We will shortly also be publishing a case note highlighting the legal and technical...

THE LOAN CHARGE IS STILL COMING TO A PLACE NEAR YOU!

There has been a lot of media coverage concerning the communications between HMRC’s Second Permanent Secretary; Jim Harra and the Treasury Select Committee which was published on 1 March 2019. The communication relates on the Disguised Remuneration Settlement opportunity and...

The 2019 DR Loan Charge – Act now!

For participants in what HMRC calls Disguised Remuneration tax avoidance, we previously reported in August 2018 the details of what is the final settlement opportunity. The “carrot” was stated to be resolution and finality of long standing investigations with the...

Statutory Review into ‘unfair’ Loan Charge

The Loan Charge, as part of the 2017 Finance Act (No. 2), was introduced by the Treasury to recover unpaid taxes by individuals who have used ‘disguised remuneration’ schemes - a complex form of tax avoidance involving contractors, employees or...

An error of Judgement?

A recent First Tier Tribunal decision in Tasneem Arif v The Commissioners for H M Revenue and Customs [2019] UKFTT 7 (TC) which involved an appeal against an information notice raises the question of what a taxpayer might do if...

HMRC launches a profit diversion compliance facility

Having achieved good yields from applying diverted profits tax measures, HMRC has launched a new ‘profit diversion compliance facility. This is aimed at businesses that HMRC perceive to be non BEPS compliant with respect to transfer pricing and will include...

The Turn of the Taxation Tide

Despite popular legend to the contrary, most tax advisers try not to be overly critical of HMRC – and this is especially true of those who specialise in the arenas of tax disputes and tax enquiries, many of whom have...

The benefits of an Independent Review by HMRC

The Taxes Acts allow taxpayers to ask for an independent review of an appealable decision by HMRC. The review is carried out by an independent officer within HMRC’s Appeals and Reviews teams. However, recent evidence suggests that many taxpayers remain...

Tribunals prove their worth

At a time when HMRC is actively seeking to remove the Tribunals from approving of third party information notices, there have been a number of cases which show the importance of why the Tribunals should still be involved in the...

The Days of Future are Past

We reported earlier this year about the likelihood of Future Capital Partners (FCP) going into liquidation or administration. This has now come to pass, a notice has been published in the Gazette setting out the timeline for the liquidation. The...

Offshore Developments – More Ammunition for HMRC

There was a time when arranging your affairs to minimise your liabilities was considered tax planning. Invariably this involved steps which included offshore structures. Nowadays the very mention of the phrase has very negative connotations and has become the byword...

Disguised remuneration – an update

We reported earlier this year on how to take advantage of the final opportunity in settling any liabilities arising from various forms of historic tax planning which HM Revenue and Customs (HMRC) badges under the disguised remuneration banner. We also...

HMRC ramps up pressure on EBTs

The expectation that HMRC would use the Supreme Court’s decision in the Rangers Case as the basis of issuing Follower Notices and Accelerated Payment Notices has now become a reality.  As set out in our previous blog HMRC is required...

UK Government does the dance of transparency!

In a backbench revolt on 1 May 2018 the UK Government was forced to back new legislation which will introduce public ownership registers in Britain’s 14 overseas territories.  The concept of public ownership registers was originally proposed by David Cameron...

Corporation tax measures and letters from HMRC

HMRC is currently sending out letters to certain large business corporate taxpayers reminding them of three important areas where there has been recent change: Corporate interest restriction (CIR) rules Hybrid mismatch arrangements Corporate loss relief reform For further guidance on...

Yet another nail in the coffin for offshore arrangements?

The UK Government has introduced a raft of legislation to address tax evasion and latterly tax avoidance. This has included; The Requirement to Correct legislation which has introduced punitive offshore penalties and extended assessing time limits for Income Tax, Inheritance...

2019 Loan Charge – another weapon for HMRC

If you have used remuneration tax planning involving loans (after 6 April 1999) and choose not to settle with HMRC using the current disguised remuneration settlement opportunity, then any outstanding loans as at 5 April 2019 will be subject to...

Settling disguised remuneration arrangements

In August last year we reported on the announcement of HMRC’s final settlement opportunity for Employee Benefit Trust (EBT) users as a result of the infamous Rangers decision in the Supreme Court. This settlement opportunity is also for Employer Financed...

Requirement to Correct – Don’t ignore it!

In yet another attempt to persuade people with offshore assets to come forward, and settle any outstanding tax liabilities, HM Revenue & Customs (HMRC) has another round of new legislation in its armoury. The second 2017 Finance Act introduced extremely...

The Future without Future

Investors in Future Capital Partners (“FCP”) investments will most likely have seen or been advised by FCP itself that the company may shortly go into liquidation or administration. This has been reported in various newspapers, including the Financial Times. Participants...

More Bite From Tooth

Back in 2016, we wrote about the rather interesting case of Raymond Tooth V The Commissioners for HMRC (UKFTT723), in which HMRC had argued that Mr Tooth had acted in a deliberate manner by entering a correct figure in an...

Rangers and Follower Notices – Key Dates

Following the Supreme Court’s decision in the Rangers Football Club Employee Benefit Trust (“EBT”) case last year. HMRC is sending Follower Notices to companies with EBTs, users of Employer Financed Retirement Benefit Schemes (EFRBS) and other (what HMRC terms) similar...

Government ups the ante on anti-avoidance

The Government has used the Autumn Budget to again send a clear message of its commitment to tackling tax avoidance and tax evasion especially in relation to offshore structures. The Government will soon be publishing the responses to a consultation document...

Paradise Islands are no longer heavenly………………

As reported in our previous blog the International Consortium of Investigative Journalists (ICIJ) continues its ongoing campaign to shed the opaque veil that masks offshore financial centres. The ICIJ has received nearly 13.4 million documents from a combination of leaked files...

HMRC attempts to care for the Social Care Sector

On 1 November 2017, HMRC introduced the Social Care Compliance Scheme (SCCS), which is aimed at employers in the social care industry who may have inadvertently paid workers less than the national minimum wage (NMW).  This follows on from the...

When the taxman came to Albert Square

Thursday’s 26 October 2017 episode of EastEnders showed that loveable rogue Billy Mitchell was the subject of a HMRC compliance visit. Many of the businesses on the show are portrayed as family owned and managed and Billy is a Partner...

Bermuda Books – the new Panama Papers?

On 25 October 2017 news broke that there has been a ”huge leak” of personal information from major offshore law firm Appleby. The firm stated they were in the process of warning clients that may be implicated as a result...

HMRC win another EBT case

On 13 September 2017 the First-tier Tribunal released its decision in a case involving an Employee Benefit Trust (EBT). Specifically the planning used by the taxpayers in this case was the “EBT Pro strategy”, but the decision equally applies to other...

HMRC roots out yet another success…

The recent decision in HMRC v Root2tax Ltd and Root3tax Ltd [2017] UKFTT 696 (TC) has demonstrated yet again HMRC’s determination to challenge promoters of tax planning arrangements who fail to disclose under DOTAS (Disclosure of Tax Avoidance Schemes) schemes...

Last and final EBT settlement opportunity

Following HM Revenue & Customs (HMRC) success against Rangers Football club (RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc) (Appellant) v Advocate General for Scotland (Respondent) (Scotland) [2017]UKSC 45) use of Employee Benefit Trusts (EBT), HMRC is...

When an appeal becomes unappealing

When a UK taxpayer receives an Assessment or Determination or Penalty Notice from HMRC, typically their adviser will encourage them to appeal on the grounds that “You’ve got nothing to lose by appealing”. Unfortunately, in some instances, that can be...

Trouble aboard the good ship HMRC?

It is said that the real sign that a ship is in trouble is not when the rats jump overboard but when the officers abandon it mid-voyage. If that’s the case, HMRC appears to be sinking because a number of...

Making Tax Digital – Delayed but still coming

The Government's proposal for Making Tax Digital have come into pretty widespread criticism, not least from the Public Accounts Committee. Criticisms have ranged from it being unworkable and unrealistic to costly and ultimately unnecessary - yet HMRC and the Government...

Tax avoidance – down for the count?

Has HM Revenue & Customs (HMRC) got tax avoiders down and out for the count? In another round of litigation, HMRC have soundly defeated two film partnerships (Samarkand Film Partnership No.3 and Proteus Film Partnership No.1) in the Court of...

The Final Nails in the Coffin of Tax Avoidance?

As further proof – if proof were needed – of the Government’s determination to wipe out tax avoidance altogether, in the Autumn Statement the Chancellor has announced yet more sanctions and deterrents. The proposed sanctions have already been largely set...

Mr Tooth Bites Back

The Taxes legislation has long reserved the heaviest penalties for the taxpayer with the most heinous behaviour – so that there is a heavier penalty for the taxpayer who deliberately evades his tax than there would be if he got...

Reverse domestic charge for telecommunications services

Following HMRC’s ongoing battle against missing trader intra-community (MTIC) fraud, and the announcement in January 2016 introducing the domestic reverse charge in relation to supplies made of telecommunication services, HMRC have recently published new guidance on the matter. Although the...

Dwellings formed from more than one building

HMRC have recently published a Revenue and Customs Brief to clarify the change in their historic position which precluded, for VAT purposes, a single dwelling to be formed from more than one building. Following the cases of Mark Catchpole and...

HMRC appeal allowed on the Longridge decision

This case has now been through both the First Tier Tribunal (FTT) and the Upper Tribunal (UT). Both tribunals agreed with the taxpayer (Longridge), however HMRC have again appealed the decision and have won in the Court of Appeal. Longridge...

PPG and extension of transitional period

HMRC have again extended the transitional period regarding changes to the existing treatment of VAT relating to pension costs and the introduction of a new method following the decision of Fiscale Eenheid PPG Holdings BV cs te Hoogezand IC-26/12) (PPG)...

Welfare Exemptions – Life Services Ltd

The issue at hand in the First-Tier Tribunal (FTT) centred around whether the supplies of welfare services by Life Services Ltd were to be treated as VAT exempt (under the provisions of Item 9 Group 7 Schedule 9 VAT Act...

Customs Comprehensive Guarantees

HMRC have recently implemented a change of policy and introduced the Customs Comprehensive Guarantee (CCG) and we are aware that the change and has meant some businesses are experiencing problems when renewing their customs special procedures. A CCG is an...

Partial Exemption – applicability of special method

An important reminder to consider whether a partial exemption special method (PESM) will remain applicable after a change in circumstances. In a recent decision in the First Tier Tribunal (FTT) regarding Dynamic People Ltd, the judge commented that she was...

Upper Tier Tribunal decision on time

The Upper Tier Tribunal (UTT) has returned its decision in the case of Iveco Ltd. Iveco – a distributor of commercial vehicles – had initially accounted for VAT on the full sales price of its vehicles without claiming a reduction...

Panama Papers – When will the Taxman come?

This has been such a year for astonishing events – what with Brexit, Prime Ministers and party leaders resigning left, right and centre, along with terrorist atrocities, attempted coups and disasters on a scale that previously might not be imagined...

The Perils of the Personal Service Company

There are a great many skilled and unskilled workers in the UK who have recognised the benefits of trading via a limited company, not least of which is the tax advantage of taking remuneration in the form of dividends rather...

Share loss relief claim succeeds in Lewis

A First Tier Tribunal (FTT) case that would have looked unpromising at first sight has been decided in the taxpayer’s favour (John Lewis v HMRC[2016] UKFTT 0254). John Lewis (John) represented himself in appealing against an HMRC closure notice refusing...

Beneficial ownership information

The Chancellor and the Treasury have issued a joint Statement on the initiative for exchange of beneficial ownership information, updated on 3 May after the inclusion of Iceland. The activities targeted go beyond tax evasion to include money laundering and...

Reporting of expenses and benefits

Now that we’re into the 2016/17 tax year, it is important to ensure that the expenses and benefits provided to your employees in the 2015/16 tax year are reported to HM Revenue & Customs (HMRC) on time and accurately to avoid...

Tax Avoidance – Gold loses its Glitter

Tax practitioners with long memories may remember a time – long, long ago – when the promoters of tax avoidance came up with all kinds of wild schemes to circumvent the more annoying features of PAYE – namely the need...

PAC reports HMRC must try harder, again!

The Public Accounts Committee (PAC) in its report of 15 April 2016 is critical of HMRC’s approach to addressing tax evasion which includes concerns over its criminal prosecution policy. To be fair to HMRC, it is not possible to undertake...

Nothing New?

The International Consortium of Investigative Journalists (ICIJ) announcement that it has received more than 11.5 Million financial and legal records relating to Mossack Fonseca and its exposé of prominent politicians and their families has once again brought tax evasion and...

Does Panama = Bad? Maybe not…

The furore regarding the “Panama Papers” – the 11.5 million documents leaked from the Panamanian law firm of Mossack Fonseca – would seem to suggest that everyone involved in a Panamanian company must be a serious villain on a par...

Demolishing the Offshore Property Developer

In yet another exercise described as ‘levelling the playing field’ the government has announced plans to ensure that offshore developers cannot benefit from their offshore status to pay less tax on developing UK property than a UK developer would –...

And now Penalties for Tax Avoidance?

A throw-away line in the 2016 Budget suggests yet more blurring of the lines between evasion and avoidance with the suggestion of the introduction of penalties for avoidance. In all the moral grandstanding that surrounds tax avoidance, it is sometimes...

Rangers EBT case – Not dead yet

The long-running saga that is the Tax Case involving Rangers FC’s use of an Employee Benefit Trust has been given yet another lease of life when, this week, the liquidator BDO who represents Rangers was granted permission to appeal the...

Reporting of expenses and benefits

Now that we’re coming to the end of the 2015/16 tax year, it is important to ensure that the expenses and benefits provided to your employees in the year are reported to HM Revenue & Customs (HMRC) on time and...

Final Call for the Settlement Opportunities

This is a final reminder that the Film Scheme Settlement Opportunity and the settlement opportunity for the various tax avoidance schemes involving 'Sideways loss relief' - whether for individuals, partnerships or corporate entities, close at noon on Thursday 11th February...

HMRC turns the Spotlight onto CFD Schemes

HMRC has published the latest in a series of Spotlights which aim to warn users of tax avoidance schemes currently under HMRC’s radar. The catchy titled “Spotlight 28: Employee Bonus Schemes - Growth Securities Ownership Plan and other avoidance schemes...

High Noon – Time to leave the Film Scheme

Participants in Tax Avoidance Film Schemes are reminded that they have until 12 noon on Thursday 11th February to register their interest to reach a settlement with HMRC. Those who fail to do so are likely to have to pay...

HMRC given £millions to tackle Tax Evasion

With the Government signing up to the Tax Lock commitment to not increase mainstream taxes, it has to find extra money from somewhere to reduce the Country’s debt and borrowing requirements. Who is in HMRC’s sights this time? Online traders, wealthy...

Happy Birthday! Now report your employer!

The recent publication of a new list of employers who are being ‘Named and Shamed’ for failing to pay the National Minimum Wage does much to instil terror in the hearts of employers everywhere – but, if anything, it also...

CJEU/Skandia case- What does HMRC think?

HMRC has issued its response on the recent, and much talked about, decision of the CJEU in the Skandia case. As anticipated it is very much an instruction to UK businesses to “wait and see.” Before we look at HMRC’s...

What is on the agenda? Common Reporting Standard

BEPS, FATCA, CRS are the buzzwords which have shaped the tax discussion and meetings recently. On 16 October, Ali Kazimi, Mazars Financial Services Partner, was one of the leading panellists at a HMRC event on the Foreign Account Tax Compliance...

HMRC commence the Accelerated Payment process

HM Revenue & Customs (HMRC) have started the process of issuing Accelerated Payment Notices (APN) to users of DOTAS schemes following legislation introduced in the Finance Act 2014 on 17 July 2014.  HMRC have previously published a lengthy list of...

Doomed to be misquoted?

Occasionally a Tax Case is published and, even at its first reading, the heart of the experienced tax investigations practitioner sinks as he realises that the case is likely to be misquoted by HMRC as supporting such-and-such a principle. For...

Tax Transparency: Our upcoming debate

How can public understanding and tax transparency shape policy and the role of a trusted advisor? The discussion papers that will be used to explore these issues at an exclusive debate in Westminster next Tuesday, 8th of July are now...

HMRC – the modern day Robin Hood?

HMRC Direct Recovery of Debt HMRC’s Direct Recovery of Debts (DRD) consultation document was published this week, seeking views on the implementation of the controversial new debt enforcement powers that were announced in the 2014 Budget. The proposed DRD regime...