The following Owner-Managed Businesses guidance note by Tolley in association with Guy Smith of inTAX Ltd provides comprehensive and up to date tax information covering:
The Managing Serious Defaulters (MSD) programme is an enhanced monitoring programme for certain individuals and businesses who have been found to have deliberately evaded the tax system and who HMRC therefore consider are ‘high risk’. It looks closely at a defaulter’s tax affairs to ensure that they are complying with all their tax obligations and tackles ongoing risk through early compliance activity. HMRC’s aim is to deter people from defaulting in the future and to reassure honest taxpayers that serious defaulters will be penalised and their tax affairs closely supervised. It replaces the previous managing deliberate defaulters (MDD) programme from 1 April 2013 and represents an expansion of the MDD regime, in that more than just deliberate defaulters are now subject to closer scrutiny by HMRC. The original MDD programme was introduced to monitor individuals and businesses (sole traders, partnerships and companies) that deliberately got their tax affairs wrong (ie they were classed as ‘deliberate defaulters’). The programme was judged to be a success with some 3,000 taxpayers having been placed into MDD, but HMRC wanted to widen the remit of the programme as it felt that some high risk cases were being excluded because the original criteria were tightly defined. Serious defaulters are regarded as high risk by HMRC because the individuals and businesses concerned have demonstrated a willingness to deliberately evade direct or indirect tax.
The programme has four key objectives. These are to:
Under the MSD programme, taxpayers are considered ‘serious defaulters’ if they have been:
**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
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.