Tax Disputes & Investigations

HMRC Campaigns

In addition to individual compliance checks/investigations of taxpayers' affairs, HM Revenue & Customs (HMRC) is increasingly focussing on groups of taxpayers where it believes a "significant minority" are not paying the correct amount of tax due.

HMRC prefers to use targeted campaigns to help it detect, investigate and punish what it believes to be widespread tax evasion or avoidance rather than offering a more general tax amnesty. By the end of 2010, HMRC had run two targeted campaigns. The first was aimed at those with overseas bank accounts and/or assets with the Offshore Disclosure Facility in 2007 and the New Disclosure Opportunity in 2009. The second was aimed at specific business sectors. The Tax Health Plan in 2010 was the first disclosure facility offered to 'professionals'. It targeted doctors, medical specialists and consultants (regulated by the General Medical Council) and dentists. The Plumbers Tax Safe Plan in 2011 was the first disclosure facility offered to 'tradesmen'. It targeted people working within the plumbing, heating and gas industry. The Tax Catch Up Plan in 2012 targeted those paid for providing coaching, instruction or tuition.

The campaigns have essentially involved three stages:

• Stage 1 – HMRC uses its legal powers to obtain information/data from third parties, which is then used to check the accuracy of Tax Returns and identify those who potentially have outstanding tax liabilities;
• Stage 2 – HMRC offers a short-term disclosure facility with beneficial penalty arrangements to encourage and allow people to 'come clean'; and
• Stage 3 – HMRC begins to formally investigate anyone who didn't come forward under the disclosure facility or who it believes has made an incomplete disclosure.

Significantly lower penalties are being offered in Stage 2, than will be available in Stage 3.

HMRC is constantly expanding its attack on offshore accounts and/or assets and is known to be trying to secure agreements with offshore tax havens to provide further information relating to UK individuals holding accounts and/or assets in those jurisdictions. One notable success for HMRC was the bespoke agreement it reached with Liechtenstein. This led to the launch of the Liechtenstein Disclosure Facility, which is due to run until 2015.

Without question, HMRC Campaigns are here to stay. Indeed, the National Audit Office commented favourably on offshore disclosure campaign and recommended that HMRC "devise similar schemes in other sectors to secure widespread voluntary disclosure."

There has been much speculation as to which will be the next business sector targeted by HMRC. Will it be bankers, financiers, barristers, lawyers, accountants, veterinary surgeons or electricians? No business sector can consider itself 'untouchable'. HMRC has already amassed data and intelligence from individual compliance checks and will continue to do so. It is constantly assessing the potential risks that are identified as part of its work and is looking for more and more ways to access information about payments made to and by business sectors.

Anyone with undeclared tax liabilities, whether they arise offshore or in the UK, who decides not to make a full disclosure to HMRC, or who makes an incomplete disclosure, risks significantly higher financial penalties being levied (between 30% and 100% of the undeclared tax/duties and up to 200% if connected with offshore assets). In more serious cases, there is a very real threat of prosecution. HMRC believes that criminal charges/trials have a strong deterrent effect on those who may have evaded tax (or be considering evading tax). It intends to significantly increase the number of direct tax prosecutions in the years up to 2015.

How can OneE TDI help?

If you know or suspect that you need to disclose undeclared income, profits and/or gains to HMRC, whether they arise in the UK or offshore, you should seek specialist advice before doing so. The management of the disclosure process and the way in which the relevant facts are presented to HMRC are key to achieving maximum penalty mitigation and protecting you from further enquiry by HMRC. In addition, you can also protect yourself from being 'named and shamed' by HMRC as part of its 'Publishing the Names of Deliberate Defaulters' programme.

At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations. We offer confidential, non-judgemental and invaluable advice to best defend our clients. We have a proven track record in managing all contentious tax matters and provide an outstanding, cost-effective service which results in tangible benefits and savings for our clients. We have up-to-date knowledge of all HMRC campaigns and disclosure facilities and are able to secure the best available terms for our clients.

Putting it simply, we take control of and manage all issues relating to tax disputes and investigations so that our clients can get on with their life and their business. What price peace of mind?

Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.

How can I contact OneE TDI?

If you would like a free, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below:

Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.

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