As I understand it the time limits for hmrc to make an assessment are 4 years if you've taken reasonable care, 6 years if you've been negligent and 20 years if you've acted dishonestly/fraudulently.
But I've also heard that time limits only apply to those who have made a full disclosure on a tax return. I get this in relation to the 4 and 6 year time limit but it this makes no sense in relation to the 20 year time limit for fraud. Because by definition if you have deliberately concealed something from the taxman then you have not made a full disclosure.
So as a hypothetical example, X tries going self employed but it doesn't work out and after six months decides to call it a day. He did not register with hmrc as self employed and did not declare any of his income during this period of self employment.
21 years later hmrc find out about this. Will the 20 year time limit apply to X, even though he made no disclosure? Or is it simply the case that hmrc cannot make an assessment for tax due from more than 20 years ago regardless of the circumstances?
But I've also heard that time limits only apply to those who have made a full disclosure on a tax return. I get this in relation to the 4 and 6 year time limit but it this makes no sense in relation to the 20 year time limit for fraud. Because by definition if you have deliberately concealed something from the taxman then you have not made a full disclosure.
So as a hypothetical example, X tries going self employed but it doesn't work out and after six months decides to call it a day. He did not register with hmrc as self employed and did not declare any of his income during this period of self employment.
21 years later hmrc find out about this. Will the 20 year time limit apply to X, even though he made no disclosure? Or is it simply the case that hmrc cannot make an assessment for tax due from more than 20 years ago regardless of the circumstances?
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