This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Investigations into years outside an enquiry

Yiannis17
Posts: 58
Joined: Wed Aug 06, 2008 3:43 pm

Investigations into years outside an enquiry

Postby Yiannis17 » Wed Sep 27, 2017 11:43 am

What is the situation please when HMRC after opening an enquiry into a specific tax year find information relation to previous years. For instance from a basic enquiry into the 2015/16 tax return it has transpired that someone had rental income for the previous 6 years. Should HMRC stick to 2015/16 or can they start requesting information for the previous periods too?

Thank you

John Cassidy
Posts: 8
Joined: Thu Mar 19, 2015 12:18 pm

Re: Investigations into years outside an enquiry

Postby John Cassidy » Wed Sep 27, 2017 12:00 pm

The issue of discovery can be complex. In terms of asking questions, HMRC can do this if they have a suspicion of discovery, see para 21, schedule 36 FA 2008. If HMRC has an actual discovery they can raise assessments for past years. Time limits and the taxpayer's behaviour (eg careless/deliberate) then come into play.

The other side of the coin is from the taxpayer's/adviser's perspective - if irregularities are or have become known then not declaring them voluntarily is generally a bad move and professional guidance comes into play - see chapter 5 of Professional Conduct in Relation to Taxation. The let property campaign is one possible route that could be used to make a disclosure, or a contract settlement covering all years could be agreed with HMRC.

SteLacca
Posts: 431
Joined: Fri Aug 07, 2015 2:17 pm

Re: Investigations into years outside an enquiry

Postby SteLacca » Thu Sep 28, 2017 2:57 pm

If this has already been picked up by HMRC in the course of their enquiry, then the Let Property Campaign is no longer an option, and you'll simply have to work through as a part of their enquiry.

wamstax
Posts: 1856
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Investigations into years outside an enquiry

Postby wamstax » Sat Dec 02, 2017 3:14 am

Yes hands up and get the figures submitted as quickly as possible and agreed to score as highly as possible for mitigation of penalties for (as HMRC call it) telling, helping and giving access to the best possible effect.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

wamstax
Posts: 1856
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Investigations into years outside an enquiry

Postby wamstax » Sat Dec 02, 2017 3:55 pm

If you don’t get it settled as soon as possible then HMRC could issue an information notice to get the information under Sch36 and as long as they laid out that they considered that you were “guilty” of careless or deliberate behaviour their notice could encompass a request for information relating to more than 4 years and be validly made. Continued failure to react positively might lead any bystander to consider that your tax evasion (assuming there is tax loss for earlier years) was deliberate if not fraudulent and would not be surprised to a hardening of the HMRC behaviour towards you.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


Return to “Tax Investigations and Enquiries”