The following Owner-Managed Businesses guidance note Produced by Tolley in association with Lesley Fidler provides comprehensive and up to date tax information covering:
Dealing with the irregularities that may arise from an employer compliance check requires a good working knowledge of the applicable legislation and practice. Arguments based solely on concepts such as fairness and reasonableness are unlikely to carry much, if any, weight with HMRC and can unnecessarily prolong the period between the opening of the review and its conclusion. However, it should be borne in mind that although employer compliance officers see a wide range of businesses and are experienced in identifying areas where weaknesses commonly occur, they are not technical experts and can and do sometimes misinterpret legislation or be unaware that rules in earlier periods were different.
In addition, regardless of the contents of guidance notes and other explanatory material produced by HMRC, it is the legislation and supporting regulations that prescribe the law. Whilst guidance may be helpful, the standard statement in HMRC booklets still applies: “This guide sets out HMRC approach in applying legislation…The guide itself has no binding force in law and does not affect any right of appeal by either party.”
When compliance officers are certain of their position, they will provide schedules of:
tax and NIC understated
interest from the due date to the actual or estimated payment date with credit for earlier payments on account
In the most straightforward cases, these will be issued under cover of a single letter alongside the notes of the meeting. In other cases, the schedules will only be prepared once further facts have been established. In more complex cases they may form the appendices to a series of letters.
These schedules need to be checked to ensure the computations are sound and based on the principles that have been agreed upon, eg scaling back to produce figures for earlier years, or whether the employer is assuming liability for the employees’ income tax and any other re
**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
Once a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the taxpayer.CorrectionHMRC has the right to amend the tax
VAT fuel scale chargesWhat are fuel scale charges?The VAT fuel scale charge is a simplified method that can be used by a business that funds both business and private mileage costs for employees to account for any output tax due on the private use of the vehicle. The charge was introduced to
What is transfer pricing?Transfer pricing is the prices at which an enterprise transfers either physical goods, intangible property or services, including financing arrangements, to associated enterprises. Generally, enterprises are associated if there is direct or indirect control by one of the
Interest paid on qualifying loans is deducted from the taxpayer’s total income (ie a Step 2 deduction from total income). See the Proforma income tax calculation guidance note.Interest on qualifying loans is usually paid gross by the individual borrower; tax is not withheld at source. This includes