HMRC COMPLIANCE CHECK
Compliance checks are initiated if HMRC thinks there's been an error or have found a tax risk where they think additional tax may be payable. Random compliance checks can also take place where there are no particular risks.
We have worked as directors, compliance managers, and caseworkers in HMRC so we can let you know what to expect and will close the enquiry as soon as possible.
We can take the burden or worry of dealing with HMRC from you. Our tax investigation consultants will:
- Meet and liaise with the HMRC
- Advise you on the best possible strategy
- Negotiate a settlement if necessary
- Mitigate tax penalties wherever possible
- Close the enquiry effectively
We can take over at any stage of the compliance check even as late as tribunal stage.
FRAUD INVESTIGATION
Fraud investigations can take place for a number of reasons. If the HMRC think you've been deliberately hiding, misrepresenting or omitting financial information from your tax return, they can begin proceedings. At Tax Resolute Ltd, we can deal with any tax issues that may be uncovered following the investigation.
How we can help:
- We've previously worked as tax inspectors and understand the HMRC process
- We can deal with criminal and civil investigations
- Our experts will manage the entire investigation including the Contractual Disclosure Facility (CDF)
Whats a CDF?
A Contractual Disclosure Facility (CDF) gives you the chance to voluntarily disclose any information before the HMRC pursue a full Code of Practice 9 (COP9) investigation. Our team can enter into successful negotiations on your behalf to resolve your tax situation as quickly as possible, minimising any penalties and liability.
When it comes to fraud investigations, getting the right advice is essential.
VAT, INCOME TAX, CORPORATION TAX AND PAYE TAX CASE
This is value added tax paid after £83k threshold, tax on your income paid by all, tax paid on profits made by UK limited companies and Pay-As-You-Earn tax deducted from employee salaries. We deal with all types of tax cases even at the same time concerning an individual or company. These types of cases are called cross tax cases.
How we can help:
Tax Resolute staff have worked as cross tax managers and caseworkers. Tax Resolute understands the internal workings of the cases and how the caseworkers are suppose to work and approach these cases. These case are often run as part of HMRC task force where cross tax risks have already been identified by HMRC. If you have received a letter from HMRC concerning any of the taxes please give us a call where we can help resolve your issue.
NOTICE OF SECURITY - VAT
HMRC issues a notice of requirement for VAT security if HMRC believes there is a risk of non payment of VAT liability. If this is ignored or not dealt with properly, this can lead to illegal trading status, court prosecution and a fine.
VAT investigations are serious, however most people don't realise that they're entitled to a tax adviser, like us, that can help deal with any issues raised by the HMRC.
Let Tax Resolute Ltd act on your behalf. As former HMRC tax inspectors, we can deal with your tax investigation, ensuring the necessary compliance checks are in place and that inspectors don't overstep the mark.
Legislative expertise
Certain restrictions are imposed on HMRC by the legislation which many taxpayers are not aware of and accountancy firms can sometimes lack the specialist knowledge needed to navigate these areas. At Tax Resolute Ltd, this is what we do and we do it well. We'll resolve your dispute in the most cost effective manner, so you can get back to business as quickly as possible.
Our intermediaries can deal with:
- Supply any information to HMRC
- Any claims made by the HMRC regarding lack of cooperation
- Inconsistencies between your accounts and records
- Tax burden and associated fines
- Quick and efficient resolution of your investigation
CAPITAL GAINS TAX CHECKS
If you sell or dispose an asset i.e. property that is not your residential main residence then you have to pay tax on the sales proceeds. If you sell a chargeable asset, Capital Gains Tax should now be reported and paid within 30 days of the sale of the property.
You should keep records evidencing your capital gains such as invoices, receipts which show the amount you paid for the asset and the amount you received and also any valuations or correspondence relating to the asset.
HMRC has sent out 14,000 “nudge” letters to individuals who have sold a property in the year 2018/19 requiring them to check whether they owe Capital Gains Tax. It is important not to ignore these letters and you should seek professional tax advice and contact us as soon as possible. We have dealt with capital gains tax cases and achieved the best tax solution for our clients.
TAX TRIBUNAL
The Tax Tribunal is a two tier system comprised of the First-tier Tribunal and the Upper Tribunal which deals with UK tax appeals. If a taxpayer disagrees with a decision made by HM Revenue and Customs (HMRC), that person or organisation can usually appeal the decision. The procedure for doing so depends upon whether the appeal relates to direct taxes or to VAT.
Although there are many reasons to appeal to a tax tribunal, the majority of the appeals are made when the taxpayer has a difference of opinion with HMRC.The First-Tier Tribunal hears the initial appeal and if the taxpayer is not satisfied with the outcome, then they can appeal to the Upper Tribunal.
Reasons for appeals include:
- Disputes about penalties imposed by HMRC
- Tax decisions made by HMRC after an investigation
- Wanting HMRC to close a tax investigation
- Differences of opinion in the interpretation of the legislation
- Disputes over amounts assessed to tax
- Issues with voluntary disclosures
We can assist you at every stage of the tax tribunal process. We will attend the hearing where we present the cases to the judge and have successfully resolved many complex HMRC investigations. We will explore every other avenue before going to tax tribunal as only 25% of tax appeals are upheld by the tribunal judge. We have represented our clients successfully in 2020/21. We will take on a case at any stage. Tax Resolute has even taken over cases where the tribunal appeal has been struck off and we had to apply to reinstate the appeal.
Useful links:
DISGUISED REMUNERATION SCHEME
The loan charge is a legislation that helps collect underpaid taxes from individuals who have been part of the Employee Benefit Trusts (EBT) or similar kinds of remuneration schemes like the Contractors Loan Scheme. It means that HMRC can collect taxes dating back till 6th April 1999, which must be paid by 31st Jan 2020.
At Tax Resolute Ltd, we offer impartial advice on contractor loan schemes to help manage your liability and achieve a settlement. If you've been contacted, speak to Tax Resolute Ltd in Ilford as soon as possible. We can establish the outstanding amount and minimise your tax liability.
How our tax advisors can help:
- We help our clients reach an acceptable payment plan with HMRC
- Make a detailed evaluation of the Contractor Loan Scheme to assess whether it was a trade or employment base scheme
- Identify the location of the scheme providers (location and current status)
- Conduct a thorough study of bank records and statements to calculate the liability amount
PERSONAL LIABILITY NOTICES
A Personal Liability Notice, or PLN, is a notice issued to an individual by HMRC, transferring a company’s liability for unpaid National Insurance Contributions to the recipient. HMRC has the power to transfer company penalties established during a tax investigation to to officers of the company including Directors by issuing a personal liability notice (PLN).
A PLN can only be issued in limited circumstances where:-
- A company is liable to a penalty for deliberate wrongdoing; and the wrongdoing is attributable to the deliberate action of an officer or officers of the company; and the officer gained or attempted to gain personally from the wrongdoing
OR - The company is insolvent or there are grounds to suspect that the company is likely to become insolvent (in which case personal gain is irrelevant). In many these cases, no appeal has been submitted and Tax Resolute has been successful atsubmitting late appeal to the extent of taking HMRC to tax tribunal sucessfully.
A maximum of 100% of a penalty for an inaccuracy or a penalty for failure to notify can be transferred to an officer of the company.if you have received a PLN, please contact us straight away to ensure that the right actions have been taken.
VOLUNTARY DISCLOSURE
If tax has been under-reported intentionally or there have been minor instances where a tax return error has been made, a voluntary disclosure might be required. Disclosing an error or omission voluntarily to HMRC is always seen as positive and will stand you in good stead.
Have you got any undeclared income that you want to disclose to the HMRC? We specialise in voluntary disclosures and can guide you through the entire process.
What can we do?
- Make the initial outline voluntary disclosure
- Discuss all options with you regarding the undeclared income
- Prepare full disclosure after agreeing figures with you
- Make the submission with HMRC
- Arranging a payment plan where required
- Deal with any further actions including tax tribunals or follow up fraud investigations
Every case is different and each customer requires a unique approach. We will sit with you for a confidential discussion and develop a viable strategy to deal with your disclosure. If you have any questions, please get in touch.
EAT OUT TO HELP OUT CLAIMS
Fraud and compliance checks will be carried out when you registered for the scheme and make a claim. HMRC will take action to recover incorrect and fraudulent claims.
HMRC guidance states that outlets can only take part if they are selling food for immediate consumption on the premises and if they provide their own dining area or share a dining area with another establishment for eat-in meals. Putting a table and chairs on the pavement outside a takeaway or van will not qualify.
Records need to be kept for each day the restaurant uses the scheme:
- including the total number of people who have used it
- the total value of transactions under the scheme
- the total amount of discounts given
COVID 19 & FURLOUGH
The following coronavirus support scheme payments are taxable and needs to be included as income in tax returns:
- Self-Employment Income Support Scheme payment.
- Coronavirus Job Retention Scheme payment.
- Small Business Grant
- Retail, Hospitality and Leisure Grant.
- Local Authority Discretionary Grant.
- Any other type of Coronavirus support Grant.
What areas HMRC are reviewing for fraud and compliance risks?
The new tax legislation has given HMRC the powers to recover payments to which recipients were not entitled to by establishing a new band of tax at 100% for the recovered tax and 100% penalty under the following schemes and conditions:
- Self-Employment Income Support Scheme
- Job Retention Scheme payment
Coronavirus Job Retention Scheme and Furlough?
HMRC will now pay 50% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
What you or your clients need to do now?
To continue to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap f £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.
The caps are proportional to the hours not worked i.e if an employee is furloughed for half their usual hours in January 2021, employers are entitled to claim 50% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
Employers continue to pay furloughed employees’ National Insurance and pension contributions from own funds.
If you or your clients have claimed too much for a CJRS grant and have not repaid it, you must declare the over claimed amount in the next online claim, which will reduce the claim submitted.
Otherwise you may have to pay 100% #tax on the CJRS furloughed amount and 100% penalty. You can let HMRC know as part of the next online claim without needing to call HMRC. Please keep records of how you calculated the furlough claim and all employees must be notified in writing that they have been furloughed
TAX PROPERTY PLANNING
Tax Resolute Property Planning Service is a socially responsible property tax collective placing HMRC rules and regulations at the core of everything we do.
Few would object to the notion that we should pay the right amount of tax and on time - but not a penny more. This is what we believe; it's what we do.
A recent Poll from the Office for National Statistics revealed that 39% of the UK population invests in property; the more surprising statistic is that only 5% invest in units sold by financial advisers and investment companies. More surprising is that the 5% is 'looked after' by 55,000 regulated investment firms employing 2m people. That might provide one clue as to why it is so expensive to invest in that way.
There are fewer than 100 specialist property advisers - the mis-match is abundantly clear.
Tax Resolute Property Planning Service will provide service to property investors and developers wanting to leave 100% of their life's work - their legacy - to their loved ones, as opposed to just 60% of it.
We will support the following:
- the 80% of investors still owning property personally - trying to cope with the S24 Finance Cost measures
- property investment companies/developers already reeling from increases to NICs and dividend tax and anxiously anticipating a steep rise in Corporation Tax in April
- aspirational investors looking for a more comprehensive solution than a 'family investment company'
- those unwittingly bending the rules of SSAS pensions
- those who want to escape the '9-5' and build better lifestyles, supported by a growing passive income
We offer the 'Property Road Map' - a compendium of all relevant financial and tax information investors need to be fully aware of; a review of the impact on legacy and return on investment of existing arrangements and a personalised 'road map' describing how to achieve all objectives. The 'how' involving strategies within both the rules and the spirit of the rules; strategy which will obtain HMRC pre-tax approval - the value of which is impossible to overestimate in the current climate.
ALTERNATIVE
DISPUTE
RESOLUTION (ADR)
Alternative Dispute Resolution is the procedure for settling disputes without litigation. Under ADR, the parties agree to bring in a third party to either to facilitate an agreement (mediation).
Jesminara Rahman, Director of Tax Resolute was engaged as the HMRC ADR Design Lead in 2012 and was responsible for implementing ADR in September 2013 as a business service. It was a service welcomed by the external stakeholders’ group, especially accountants, tax specialists and tax barristers.
She has since assisted many clients through the ADR process and settling disputes with resounding success.
Read more about our success stories here.
What is the Alternative Dispute Resolution (ADR) Process?
If tax assessments have been issued on the case, the appeal has to be accepted by the tribunal before applying to ADR. This is so the client’s appeal rights are safeguarded and there is no point for HMRC to invest resources in an appeal that has expired.
The ADR application is submitted online and an email acknowledgement is received on the day. The ADR applications are then allocated and considered by an ADR facilitator, who will contact both parties to discuss the applications.
ADR should be considered when: - Parties are unclear or unable to articulate points in dispute.
- There is no dispute over technical analysis, but parties need to agree on a methodology to quantify liability.
- There is a dispute over facts.
- There are strained relationships between HMRC and the taxpayer.
- The taxpayer feels that information and documents have not beenconsidered by HMRC
What is the advantage of Alternative Dispute Resolution (ADR)?
Both parties retain ownership of the decision, whereas at tribunal the decision would be made by the tribunal judge and at HMRC review stage, by the HMRC reviewer. ADR enables parties to begin or resume negotiations when direct negotiations have stalled or are at an impasse. A third-party presence via the ADR facilitator also changes the dynamics of a dispute and brings a fresh perspective. ADR allows for flexible discussions to take place that could not in the normal compliance process, it is a confidential and without prejudice.
On our team we have accredited Alternative Dispute Resolution (ADR) specialists who are ready to help you.
Click here to find out who can apply for alternative dispute resolution.
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TALK TO OUR DIRECTOR:
JESMINARA RAHMAN
"We can advise, assist or take over tax compliance investigations, COP 8 and COP9 cases at any stage whether it is VAT, PAYE,Income Tax or Corporation Tax. I know how the HMRC caseworkers mind works and can get the best results for you"
Contact MeFollow me on Linkedin + Experienced Tax Investigation Specialists
Ex-HMRC
Accredited Alternative Dispute Resolution Experts trained by HMRC
20+ Years Experience and 99% case success rate
99% Case Success Rate
