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Where Taxpayers and Advisers Meet

20 year rule.

keaton
Posts: 18
Joined: Sun Jun 09, 2013 7:52 pm

20 year rule.

Postby keaton » Sun May 18, 2014 5:14 pm

I've read that under no circumstances can hmrc go back further than 20 years, with 6 years being the usual amount, yet in the news article

https://uk.finance.yahoo.com/news/nowhe ... 11277.html

The first comment is from a man claiming they went back over 40 years. Am I missing something?

pawncob
Posts: 4278
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: 20 year rule.

Postby pawncob » Tue May 20, 2014 8:34 pm

In cases of fraud there is no limit to how far HMRC can go back (at least as far as 1947).
With a pinch of salt take what I say, but don't exceed your RDA

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: 20 year rule.

Postby wamstax » Wed May 21, 2014 4:52 pm

Pawncob

Where does the 40 year time limit come from within the statute as the most I will entertain even in fraud cases is 20 years (and voluntary restitution of any earlier duties would cause me to have sleepless nights)
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: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: 20 year rule.

Postby wamstax » Wed May 21, 2014 5:04 pm

OK found the post on the link from "Kevin Bl**d* Wilson" and he is clearly advertising Tax Investigation Insurance and FSB.

Very unlikely story about going back 43 years or his advisers/insurance company didn't represent him very well!!!
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

keaton
Posts: 18
Joined: Sun Jun 09, 2013 7:52 pm

Re: 20 year rule.

Postby keaton » Wed May 21, 2014 5:24 pm

So do they go back more than 40 years because that guys post seems to contradict most things I've read saying 'in no circumstances will hmrc go back further than 20 years'

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: 20 year rule.

Postby wamstax » Wed May 21, 2014 8:55 pm

Bottom line is that they can only assess back 20 years at the most so think that Kevin Bl**d* Wilson just didnt and doesnt know what he's talking about. Additionally he seems to think that somebody that would be allowing HMRC to go back 43 years was doing a grand job. I think not and therefore you can take his recommendation about his tax investigation specialists with a pinch of salt as he clearly doesnt even know how far back HMRC can legally go.
I have absolutely no problem with taxpayers protecting themselves with tax investigation insurance (I sometimes even work on such cases) but remember investigation insurance only covers the fees and there can be restrictions in that it will not cover serious type cases e.g.COP9 and or CDF which are of course generally the most expensive to action and resolve
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

carne-london
Posts: 37
Joined: Fri Oct 11, 2013 10:35 pm

Re: 20 year rule.

Postby carne-london » Wed Oct 22, 2014 7:48 am

hi guys

i can tell you that the HMRC will go back up to 20 years. I am under such a investigation for sale of properties and they went back to 2002. even though i was told normally they only go back 6 years but under my case they are going back to 2002. I informed them that bansk, solicitors, mortgage lenders do not keep records longer then 6 years and hence it be hard to get the relevant documents to fight my case. The tax inspector looking at my case seems to be ignorant to the fact that bansk, mortgage lenders, solicitors are only obliged to keep records for 6 years only under data protection.

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: 20 year rule.

Postby wamstax » Wed Oct 22, 2014 8:09 am

Hi There
It might surprise you how much you can get from solicitors and banks etc outwith the normal 6 years rule but yes you are correct. The amount from banks can vary and depends sometimes whether they are within or outwith the UK. The latter can invariably give you a lot further back than the 6 years and from experience often back to the start of the account.

Even though you are correct in relation to how much the banks etc can supply it will be necessary for you to provide a full disclsoure of your irregularities and therefore you will need to piece together earlier events based on best evidence. Sometimes of course you will have loads of paperwork re properties that will assist without going to the bank or original solicitor.

Hope that this is of some help and your tax adviser should be able to assist you in this respect assuming that they have experience of extending years investigations
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

carne-london
Posts: 37
Joined: Fri Oct 11, 2013 10:35 pm

Re: 20 year rule.

Postby carne-london » Wed Oct 22, 2014 10:11 am

hi

thank you for your advise.

unfortunately my bad luck is the solicitor firms ceased trading, the builders i used gone out of business, halifax and santander told me they do not keep records of redeemed mortgages for only 6 years. the firm i am using are specialist in tax investigation.....they charge £200.00 per hour and i have already paid them £6,000.00 already. i have been able to obtain the copies of all the invoices and receipts which had kept copies on my PC. My worse luck is my home and office got burgled 2 years before the i got the letter from HMRC. All documents and invoices were stolen/destroyed as the robbers left the water running in my office and all the documents were ruined.
i been able to supply copies much documents i could and now it be down my accountant to argue for a reasonable figure.

thank for your advise

wamstax
Posts: 1862
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: 20 year rule.

Postby wamstax » Thu Oct 23, 2014 1:13 pm

Hi There the rate is a bit more than mine (and I keep fees low to avoid VAT limit) but decent tax investigation is not cheap and you have to be sure that you are getting value for money BUT also somebody that knows what they are doing and can show you ways to cut down the bills (both tax and fees).
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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