The following Owner-Managed Businesses guidance note Produced by Tolley in association with Guy Smith of inTAX Ltd provides comprehensive and up to date tax information covering:
HMRC offers disclosure opportunities via campaigns for people to voluntarily put their tax affairs in order and become compliant.
Campaigns do this by:
identifying a specific group to target. Groups targeted so far include doctors, dentists, plumbers, electricians, tutors and fitness coaches
identifying information and intelligence that can be used to encourage and influence that group to come forward. HMRC uses formal legislative powers to obtain details from third parties
offering an opportunity to those within the targeted group to come forward and disclose understated income and overstated expenses on the best possible penalty terms. See the HMRC campaigns in practice guidance note
pursuing those who do not disclose at all, or who do so inaccurately, with a programme of action that can include criminal investigations
Campaign activity, including details of the formal powers used, is covered in the HMRC campaigns ― introduction guidance note. How to handle a campaign in practical terms is covered in the HMRC campaigns in practice guidance note.
The objective should be to obtain as much background information as possible concerning the disclosure, with particular regard to the behaviour of the client which caused the error.
This is an important first step because the behaviour will determine how many years HMRC will expect to see included as part of the disclosure and the level of penalty chargeable.
HMRC considers four different levels of behaviour in these circumstances, namely whether the error giving rise to the disclosure was made despite the taxpayer taking reasonable care, or was made carelessly, deliberately or deliberately with concealment.
The relation between behaviour and the penalty rate is covered in the HMRC campaigns in practice guidance note.
The agent should then check whether the disclosure can be made during a current or forthcoming campaign, or needs to be made outside a
**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
This note provides details on how to calculate quarterly instalment payments (QIPs) for large and very large companies.The instalment amounts are based on the estimated corporation tax liability of the company’s current accounting period. Therefore, this means that large and very large companies
What is an accumulation and maintenance trust?An accumulation and maintenance (A&M) trust is a particular type of settlement intended to make provisions for children and young adults up to the age of 25. The key feature is that trustees are given discretion over how to use the income for the benefit
Companies sometimes provide directors, employees or shareholders with low interest (or interest-free) loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed in detail in
Investors’ relief is a capital gains tax (CGT) relief on the disposal of qualifying shares in an unlisted company. A taxpayer making a disposal that qualifies for investors’ relief will pay tax at a rate of 10%.Although it is a separate relief, the rules for investors’ relief were intended as an