The following Owner-Managed Businesses guidance note Produced by Tolley in association with Emma Broadbent of Grant Thornton provides comprehensive and up to date tax information covering:
Note: This guidance note uses the term compliance check in line with HMRC’s current terminology. However, the term ‘enquiry’ is still used in the legislation referenced.
HMRC will close a compliance check into a tax return once it has successfully addressed the perceived risks (with or without the agreement of the taxpayer / adviser). These risks will normally have been identified before the check began and as the check progresses. HMRC and taxpayers may resolve and close individual aspects, by way of a partial closure notice (PCN), whilst leaving other matters open. When all issues are resolved, a final closure notice is issued. Prior to 16 November 2017, it was not possible for HMRC to issue a PCN. Instead, it was only possible for HMRC to issue a final closure notice once all matters were complete.
HMRC may have found nothing wrong with the tax position being checked or may have found an inaccuracy. During the check HMRC should normally have asked for interim payments of late paid tax and Class 4 national insurance contributions if applicable and considered the position regarding interest and penalties.
If the check is closed without any inaccuracy being identified, HMRC must send a final notice to the taxpayer that the check is complete.
If the compliance check has been carried out on the telephone, the HMRC officer should confirm closure as part of the call. It is good practice to ask for confirmation of this in writing and HMRC should always write to a taxpayer or adviser if requested. However, a formal check should only be concluded via a closure notice, contract settlement or settlement deed.
Where an inaccuracy has been identified, checks to self assessment returns will be closed through an invitation to amend the tax return and a closure notice, or through a contract settlement, or a settlement deed. On the closure of a partnership compliance check, the tax returns of all partners will require amendment.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The supply of fuel and power is treated as a supply of goods for VAT purposes. Supplies are fuel and power are normally liable to VAT at the standard rate. However, providing certain conditions are satisfied, it is possible for suppliers to charge the reduced rate of VAT on certain supplies of fuel
Generally speaking, inheritance tax (IHT) is charged only on transfers of value by individuals and trusts. However, to prevent avoidance of the tax, the charge is extended to participators in close companies where:•a close company makes a transfer of value, or•the share capital or loan capital of a
Personal representatives are responsible for finalising the deceased’s tax affairs. They must file outstanding tax returns and claim any repayments due.For many estates where the deceased’s tax was deducted under PAYE on pensions or employment, a refund is likely to arise because the deceased is
Restriction of carry forward and carry back of trading lossesFollowing the extensive changes to the loss carry forward provisions introduced from 1 April 2017, the anti-avoidance rules restricting the offset of trading losses following a change in ownership were tightened up and extended.