The following Employment Tax guidance note by Tolley in association with Guy Smith of inTAX Ltd provides comprehensive and up to date tax information covering:
A new framework, supported by the powers within FA 2008, Sch 36 exists for compliance checks. It enables HMRC Officers to:
It is only reasonable to carry out a check where it is possible for the Officer to correct the tax position. If the risk identified is for a period which is out of time for assessment, the Officer should not pursue the risk.
A ‘tax position’ means a person’s past, present and future liability position with regard to any of the taxes listed at CH21540.
The new powers contained within FA 2008, Sch 36 took effect from 1 April 2009 and initially applied to:
With effect from 1 April 2010, the majority of the remaining taxes administered by HMRC were brought within the remit of FA 2008, Sch 36.
A list of the powers replaced by FA 2008, Sch 36 can be found in CH21050.
FA 2008, Sch 36 allows a compliance check to be made before a return has been submitted. A risk must be identified before an Officer carries out a pre-return check, unless the taxpayer has invited the Officer to make the check.
HMRC conducts pre-return checks in high risk cases where fraud is suspected or where the person is working
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