4. Tax Investigations
With greater sharing of information between different jurisdictions on a global scale and the rigour of HMRC’s Connect System (more details as below), the stakes have never been so high.
Accountants up and down the country have seen a significant rise in HMRC enquiries which can expose individuals to a harsh penalty regime. Being subject to an investigation by HMRC can prove to be a stressful and time-consuming experience.
We have significant knowledge and expertise dealing with HMRC. Let us help to make your life easier when dealing with HMRC enquiries.
Having the right support can also ease the burden if you’re faced with an intrusive tax enquiry (which can often be the case), as well as improve the chances of a favourable and fair outcome.
We can also offer you fee protection insurance to provide cover against HMRC tax investigations.
Connect is a sophisticated computer software and is the key data analysing tool used by HMRC. It was introduced in 2010 and was developed with the expert help of BAE Systems.
HMRC’s Connect is a data-matching and risking-tool that allows HMRC to cross-match one billion HMRC and third-party data items. It identifies “hidden” relationships between people, organisations and data that could not previously be identified. It’s been called a ‘game changer’.
If you have overseas assets, or you receive income or gains from overseas assets, you may have received a letter from HMRC asking for further information. These letters are being called ‘nudge letters’ by HMRC and they serve as a prompt for taxpayers to consider whether they are properly declaring overseas income or gains in the UK.
Nudge letters are issued when HMRC becomes aware that you might have non-UK assets, for example you might have savings in an overseas account. Be mindful that this alone does not mean you owe any tax; the letter is simply a nudge to you to consider whether you need to take action.
If you have any questions or need further advice in this area, please get in touch and we will be happy to discuss further