HMRC has decided to get heavy with those who eg evade VAT and those who become deliberately insolvent in order to "avoid" paying tax.
The new "heavy approach" will begin a programme of unannounced visits from tax officials, combined with in-depth compliance checks on those who have already received tax penalties over a period of two to five years.
The press release issued by HMRC on the subject appears more akin to an article in a tabloid "news"paper, rather than an official announcement of a "reworked" policy by a government department:
"Tax cheats who become insolvent to dodge their companies’ tax obligations face up to five years’ scrutiny from HM Revenue and Customs (HMRC)."The "reworked" procedure (seemingly the Managing Deliberate Defaulters (MDD) scheme, which was launched in 2011 and aimed to keep tax cheats on the straight and narrow through close monitoring didn't work - otherwise why replace it?) will include evaders who:
* have received a civil evasion penalty for dishonestly evading VAT; or
* are required to give a security deposit for VAT, Environmental Taxes, PAYE or NICs; or
* become deliberately insolvent as a way of dodging their business taxation obligations.
David Gauke, Exchequer Secretary to the Treasury, is quoted:
Given that HMRC are also providing voluntary home visits to those who want help
with taxes (as it will be closing its enquiry centres) I wonder if there are sufficient staff within HMRC to be able to "drop in" as frequently as implied?"Increasingly, evaders are using contrived insolvency to evade tax, either through liquidation of a business or bankruptcy of an individual.
It is only fair that someone who has deliberately tried to evade tax should face extra scrutiny from HMRC."
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to read about: Tax Investigation for Dummies
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"
Unannounced visits are nothing new and were used before HMRC was created and you could only visit if you gave notice.
ReplyDeleteIt might be deemed as "protecting the revenue" which is pretty basic as concepts go.
Rut who is left to do the visiting, I know, lets have a visiting "task force" costing additional £'s from who knows where.
Wonder if the dozy twits will do their homework and H&S checks before trying to bully what might not be a simple shopkeeper?
Sure looks like a repackaging/rebranding exercise. Probably out of the HMRC "Skunk Works" think-tank using a blindfold and a pin no doubt. Still it makes for a sound bite during an otherwise quiet week.
ReplyDeleteWonder if this part of the "service" to the "customer" will be in line for privatisation and handing over to G4$sss, or even a Blackwater offshoot.
BTW, when is RTI due to fall over, I mean commence?