Tax investigations
Tax Conditionality – the tip of a titanic iceberg
They do say that nine-tenths of an iceberg sits below the surface of the water. The same may be true of some legislation, where all the consequences might not be immediately visible... Budget 2020 contains a mention of what looks...
How hard is it to pay tax?
You would think it should be very easy to pay money to HMRC. After all, as we are being regularly reminded, it is the very raison d’etre for its existence. It is the channel for funds to the Treasury and...
The unprepared restaurateur, Test Eats and the inexperienced accountant: A recipe for disaster
In this instalment of our blogs on all topics to do with HMRC’s investigations and enquiries, we discuss a recipe which, almost always, leads to disaster for the taxpayer. The main ingredient requires a business in the restaurant/takeaway/hospitality trade but...
The Loan Charge change – Reflections on a U-Turn
On the Friday afternoon before Christmas 2019, the government released the report by Sir Amyas Morse following his review of the Loan Charge legislation that had been introduced in 2016 and which had come into effect on 6/4/2019. The precise...
‘Twas the afternoon before Christmas
If such a thing even exists, the Friday afternoon before the Christmas Break is rarely an exciting or memorable occasion in the tax world. Not like 31 January, say, or the morning before the Budget announcement, when minds are sharp...
HMRC ignores its own behaviour on “Nudge Letters”
It seems that HMRC is immune to the very behavioural techniques which it has so enthusiastically adopted (such as the use of “nudge letters”) to influence taxpayers’ behaviour in complying with the UK tax legislation. In our blog on nudge...
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...
Nudging HMRC to be more transparent with its nudge letters
In recent months, HMRC’s Risk and Intelligence Service (RIS) has once again issued “nudge” letters to individuals who HMRC believes have offshore income and gains that could be liable to UK tax. The “nudge” letters we have seen were issued...
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...
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...
Requirement to Correct – Time is running out
In February this year we reported on yet another addition to HM Revenue and Customs (HMRC) ever expanding armoury in persuading people with offshore assets to come forward. As we noted then this is the stick which is now being...
Effectiveness of Publishing Details of Deliberate Defaulters (PDDD)
HM Revenue and Customs (HMRC) recently published research which looked at the effectiveness of the PDDD programme. The research showed what many in the profession have long held to be the case. The awareness of the programme amongst the general...
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...
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...
Extending assessment time limits for offshore income, gains or chargeable transfers
HMRC has issued a consultation seeking views on the extension of the four and six year time limits for assessing cases involving loss of tax from offshore income, gains or chargeable transfers, to 12 years. The consultation indicates the reason...
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...
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...
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...
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...
Mazars warns against fraudsters masquerading as HMRC
Members of the public have contacted us regarding suspicious telephone phone calls purporting to be from HM Revenue and Customs Fraud Investigation Service. Those contacted are advised that HMRC is raising an assessment against them and if they would like...
At last, HMRC takes a reasonable view of a reasonable excuse
There is an old and bad joke that says that the difference between HMRC and a rabid Pit Bull terrier is that, if you batter a rabid Pit Bull Terrier long enough, it might eventually let go, whereas HMRC… But...
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...
Big Brother Requires You to Confess – and Correct Your Sins
One sometimes wonders whether the Government has taken its inspiration from George Orwell’s 1984 or whether it is a symptom of HMRC’s decreasing staff resources but, increasingly, we see legislation that places the burden upon taxpayers to confess all their...
HMRC gets tough(er) again: The Worldwide Disclosure facility
When does it start and who can use it? On the 5th of September 2016, HMRC finally published details of its new disclosure facility; the Worldwide Disclosure facility (WDF), which will run from the 5 September 2016 to 30 September...
“Ingenious” partnerships – Two out of three might not be bad – but it isn’t good
The First-tier Tribunal (FTT) has released its long awaited decision in the tax-planning schemes of Ingenious Games (IG), Ingenious Film Partners 2 (IFP2) and Inside Track Productions (ITP) litigation and has agreed that two of the three partnerships were trading...
What a Difference a Day Makes – Michael Mabbutt v HMRC
The recent case of Michael Mabbutt v HMRC [2016] UKFTT 306 (TC) has highlighted the importance of always checking that your client has received a valid enquiry notice. In this case Mr Mabbutt appealed to the First-Tier Tribunal against a...
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...