Owner-Managed Businesses

HMRC campaigns and the role of the agent

Produced by Tolley in association with Guy Smith of inTAX Ltd
  • 21 Mar 2022 07:31

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 campaigns and the role of the agent
  • Introduction
  • The client wants to make a disclosure. Where should the agent start?
  • What should happen next?
  • What should the agent do if the client needs to make a disclosure, but is reluctant to do so?
  • What other practical steps should the agent consider?
  • Planning points and risks

HMRC campaigns and the role of the agent

Introduction

HMRC offers disclosure opportunities via campaigns for people to voluntarily put their tax affairs in order and become compliant.

Campaigns do this by:

  1. identifying a specific group to target. Groups targeted so far include doctors, dentists, plumbers, electricians, tutors and fitness coaches

  2. 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

  3. 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

  4. 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 client wants to make a disclosure. Where should the agent start?

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

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

There's no margin for error. Think Tax.
Think Tolley.

TolleyGuidance gives you direct access to critical, comprehensive and up-to-date tax information and expertise you can rely on.

TAKE A FREE TRIAL

Popular Articles

Quick succession relief

What is quick succession relief?Quick succession relief (QSR) reduces the tax payable when the same property has been subject to more than one charge to IHT. It applies where there have been two chargeable transfers on which tax is payable within a period of five years.Although commonly called QSR,

23 Mar 2022 11:02 | Produced by Tolley Read more Read more

Partial exemption de minimis limit

This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may

06 Apr 2022 18:12 | Produced by Tolley Read more Read more

Special rate pool and long life assets

Special rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool consists of expenditure incurred

01 Jul 2022 09:32 | Produced by Tolley Read more Read more