For COP9 Investigations, we always advise taxpayer to hire an experienced accountant or get help when submitting CFD. HMRC procedures can be confusing for the inexperienced and will require expert help. A long drawn investigation can lead to higher penalties, which makes hiring an professional cost effective.
The Digital Disclosure Service (DDS) is a service by HMRC that assists companies and individuals in bringing their tax affairs up to date in a straightforward way. If you owe tax, you will need to declare it straight away, after which you will be given time to explain exactly what it is that you owe, how did you arrived at this tax amount and pay the money.
If you’re on the lookout for a new accountant to handle your tax affairs and need to ensure you find just the right fit for the job, read our tips on how to find the financial whizz you need, allowing you to get back to the important job of running your business.
For years the Government and HMRC have tried to curtail the actions and processes of EBTs only to create more complex legislation. In recent years attempts have been made to clarify and simplify procedures for the operation of EBTs culminating in elements of the 2016 Finance Bill.
One major issue for doctors working on a locum basis is that because of the rotation schedule you adhere to, there may be issues with your tax code. This is a basic part of figuring out what you have to pay, but all the same, it’s understandable if a busy professional isn’t able or just doesn’t want to think too much about their taxes!
These loan schemes come in a number of shapes and sizes. Currency arbitrage is one of the riskier methods. The idea behind it is that through signing up with an off-shore company, and receiving exotic foreign currencies in exchange for loans, that your earnings can be turned into non-taxable foreign exchange gains.
The million dollar question is, how do HMRC decide who to investigate, and who to leave alone? Well, the bad news is that by far the most likely ‘victims’ of an HMRC investigation are self-employed workers who take on the responsibility of their own taxes, rather than handing the work to an accountant.
Many contractors are concerned that with the public sector already under immense pressure, they will not have the skills or resource to make such a thorough decision and instead, classifying all contractors as employed workers under IR35, is a much easier option.
If you consider how many contractors work for a major public sector body like the NHS, then the logistics of such a task are unfathomable. Most public sectors teams lack the necessary experience and understanding of case law to make a reasonable decision.
Back in 2000, the IR35 legislation was introduced to try and tackle those who were abusing the system previously. There is no ‘set-in-stone’ example, but it was alleged that some contractors were enjoying the benefits of running a limited company, while still enjoying the employee benefits from their end-client.
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