Taxpayers who fail to disclose taxable income to HMRC will result in the person becoming liable for penalties that are likely to be much higher than the existing penalties, with a minimum penalty of 100 per cent of the tax owed.
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.
DOTAS guides promoters of Employment Benefit Trusts and other schemes, that is, the individuals who market or design the scheme to provide the relevant information about avoidance schemes to the HMRC.
HMRC has been granted the power to dig deeper into your private life and your business matters than you may be happy with. To tell the truth, with the new powers granted to them, the inspector assigned to you will seem to be treating the taxpayer in ways that border on invasive.
Be aware that HMRC may visit anonymously prior to the visit and make purchases that they will later ask you to match up with the receipts from your cash machine. A technique sometimes used is to pay half cash and half credit card, they will later check that both cash and card have been recorded.
A Case law about chargeable gain on the disposal of their CGT Private Residence Relief
HMRC computer system Connect cross-checks its database of companies against the taxes they have declared, and any discrepancies can lead to the tax office writing to you to chase up unpaid taxes. Once this happens, you will be looking at a fine of anywhere up to 200% of the tax you owe.
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.
Airbnb operates under the idea that your home is like a regular BnB, so you’re at home while your guests are, but they treat your home like a hotel. OneFineStay (and other websites like it- there are quite a few!) on the other hand, don’t even require you to be at home when your guests come to stay!
