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Where Taxpayers and Advisers Meet

Undeclared property income Investigation

HTW
Posts: 4
Joined: Mon Dec 11, 2017 11:23 pm

Undeclared property income Investigation

Postby HTW » Mon Dec 11, 2017 11:32 pm

This is a long post and I would like to find out about the process, and hope it will help me to find the right help.
Background:
I have declared one property and not the other two ( one BTL and the other, my main home which had lodger(s).)
HMRC has sent me a 'check for self assessment tax return letter/ investigation' After a few days I had submitted a voluntary disclosure.
I then received a letter from HMRC to say I have 90 days to make a disclosure. However, when I called the invesgation case worker and I was told, I cannot do a disclosure as I am being investigate.
Since I have missed the deadline to submit requested documents,I have received a second investigation letter (a formal notice legally requesting the documents).
I would like to know:
1/ how to proceed with the above? Do I have to respond to both disclosure and investigation?
2/ how likely will HMRC allow to go down the disclosure route and write off the full investigation? is there a preference and why?
3/ what kind of help can I expect from an experienced accountant / tax adviser ? and how to tell if they are any good?
4/ If all my documents are ready, how long does it usually take an accountant / tax adviser to prep before submitting to HRMC?
Once engaged, how does the process generally work ? eg who does what? what docs will be required?

SteLacca
Posts: 443
Joined: Fri Aug 07, 2015 2:17 pm

Re: Undeclared property income Investigation

Postby SteLacca » Tue Dec 12, 2017 12:43 pm

Once HMRC open an enquiry under S9A the let property campaign is no longer available to you, and so no disclosure is required.

You are, however, required to provide any information and documentation reasonable required by HMRC to enable them to establish the correct tax due. Any failure to do so will incur penalties (I assume that the second letter is a S36 request) in addition to any penalties charged in respect of the enquiry itself.

Almost any competent advisor will be able to assist, and you may want to seek recommendations for someone local from friends/family. Having obtained the required information they should be able to deal with the whole enquiry for you.

As for how long, it very much depends on how much work there is, but if necessary they will liaise with HMRC to get an extension.

wamstax
Posts: 1867
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Undeclared property income Investigation

Postby wamstax » Tue Dec 12, 2017 1:42 pm

You haven’t done too well up to now and you need to get a tax Investigation specialist on board as clearly from your post HMRC will prejudge ( probably correctly) that you have deliberately (and fraudulently) evaded Taxes.

You are also pushing up the penalty they will ultimately seek with your attempt to sidestep an ongoing investigation and not responding timeously to informal requests for information ultimately forcing them to initiate formal Sch 36 action.

If you had read the voluntary disclosure guidance you would have clearly seen that you cannot get the more beneficial terms of the voluntary disclosure campaigns once you’re caught with your trousers down and HMRC have issued their investigation opening letter.

Basically you know that matters are wrong in at least your let Property and depending what your other sources of income are ( e.g. if you were self employed or shareholder/director of a company ) you can expect their investigation to be thorough and outside the voluntary disclosure facilities. Depending on the sums and sources and periods involved where you have been guilty of tax evasion matters could be even more serious than you think and you might even have to consider looking for the protection of Code of Practice 9 ( see link www.wamstaxltd.com/codes_of_practice.html ).

In your present situation you need to take IMMEDIATE action to engage with an experienced tax investigation specialist ( not all competent tax advisers can deal with tax investigations to get the best results going) who will be able to act proactively to get the right way forward and not just react to HMRCs requests that will have to be responded to in time limits and lead to mistakes being made that could be costly when it comes to final settlement. There is nothing truer than every Investigation is one of a kind and you only get what you pay for. As regards timescale and costs how long is a piece of string.

With your past record of delaying and only telling part of the story you will have to change your spots as you will need to be wholly truthful with your adviser to ensure that you come out of this with the best possible outcome at the earliest possible date. Without wishing to overstate this I would explain that telling HMRC porkies or withholding relevant information are ways to get yourself moving out of the “civil settlement contract” route into the taxes criminal and potential prosecution category.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

HTW
Posts: 4
Joined: Mon Dec 11, 2017 11:23 pm

Re: Undeclared property income Investigation

Postby HTW » Tue Dec 12, 2017 3:05 pm

Thank you for both replies, I would be interested to hear other views, too.

wamstax
Posts: 1867
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Undeclared property income Investigation

Postby wamstax » Tue Dec 12, 2017 3:26 pm

BTW you can expect the HMRC Investigator to take over your suggested voluntary disclosure as it will no longer be effective. He/she will no doubt communicate with the Vol Disclosure section to advise that it isn’t effective

By all means look for further views but remember you can only rely on advice given by somebody who has been able to review all the paperwork and who you are paying a fee for the advice as a client.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: Undeclared property income Investigation

Postby bd6759 » Tue Dec 12, 2017 5:34 pm

My view is that both the previously replies have covered the issues succinctly and correctly.

HTW
Posts: 4
Joined: Mon Dec 11, 2017 11:23 pm

Re: Undeclared property income Investigation

Postby HTW » Mon Jan 22, 2018 10:07 pm

Thanks for all the replies.
I am interested to find out:
1/ if all the request document have been send to my accountant. I am aware this is the busy period for them, and the accountant had requested a few extensions and so have to make contact with HMRC, should I be charged for these work - 'calling the HMRC'? as I am not causing the delay
2/ if I want to amend my 2017 tax return , are there any pros and cons to do it before my investigation closes or can it be submitted this week?

wamstax
Posts: 1867
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Undeclared property income Investigation

Postby wamstax » Tue Jan 23, 2018 5:02 am

Charging of fees is a matter between you and your accountant but how far can you push for somebody working for you for nowt?

If you know your 2017 return is wrong then you are duty bound to amend it to the correct figures as long as HMRC have not already put it under a S9A enquiry notice for that year
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

HTW
Posts: 4
Joined: Mon Dec 11, 2017 11:23 pm

Re: Undeclared property income Investigation

Postby HTW » Fri Mar 23, 2018 11:23 am

Thanks for all the replies and wamstax pointers.
Update (I have mental health issue and it has taken over hence the late reply):
A full disclosure submitted and all taxes and interests have been paid. As far as I know the next stage is assessing penalties for inaccurcies (arguements).
I now realised I should have find out whether my CTA has success with these arguements,whether they are experienced with dealing with clients with mental health issues. or is it necessary to use a CTA?? I just realised these is now arguement and not tax calculations?
If I have to change CTA who is aware with mental health issues (be good to know how to find them), they will need to read through all the paperwork? is it difficult to try for 'Careless behaviour'?
After arguements and paid penalities, what will happen to the case ?
I am struggling to concentrate and hope this make sense. Any thougts welcome.


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