ENQUIRIES - 24.06.2024
HMRC targets retailers for investigation
Warning letters. HMRC is writing to businesses that use electronic tills and which it suspects aren’t declaring all their income. If you receive one of these letters do not ignore it! HMRC says it will allow 30 days from the date of issue of the letter before it will escalate the matter. In practice there will be a little leeway, but don’t bank on it. ...
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PENALTIES - 24.06.2024
New late payment fines
HMRC has finished consulting on draft regulations for changes to its new system for late payment penalties. Why is the change needed and who will it affect?
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PAYROLL - 24.06.2024
Directors’ remuneration - avoiding HMRC penalties
The timing of HMRC payroll reporting for employees is straightforward. However, for directors’ salaries etc. special rules can mean you need to send a report to HMRC sooner than you might think. What are the trigger points for reporting?
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TAX CASES - 21.05.2024
Was incarceration reasonable excuse?
Herrmann v HMRC. Mr Herrmann (H) failed to disclose property income to HMRC. After an enquiry, assessments and penalties were raised for 14 tax years. H appealed, in particular raising an objection to a period of time covered when he was in prison, as he was prohibited from running a business. ...
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ENQUIRIES - 17.05.2024
When is HMRC out of time to start a tax enquiry?
HMRC adopts a “process now, check later” system for self-assessment tax returns. That means it usually processes tax returns assuming they are correct but reserves the right to make enquiries. But how long does it have to do this?
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INVESTIGATIONS - 03.04.2024
Penalties for not reporting a tax liability
The First-tier Tribunal (FTT) recently had to decide if HMRC was right to issue tax assessments and penalties because a taxpayer had provided inadequate information about her income. What practical advice can be learned from the FTT’s ruling?
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