We are starting to see evidence of how HMRC will be approaching years 2011/12 and beyond.
For those of you who made a return for that period but had no enquiry notice, you will get a letter saying that HMRC has examined 12/13 and have questions that may extend to 11/12 so can they please have some information. Relatively easy to deal with.
For those of you who DID NOT make a return for 11/12 you are likely to get a letter asking you to make a return within 3 months. Failure to do so will result in a section 28C TMA 1970 determination.
The determination is essentially an assessment based on HMRC guesses.
You CANNOT appeal the determination.
You CAN displace it by submitting the return.
However the letter inviting a return starts with a warning that HMRC's Counter Avoidance team believe you have committed tax avoidance. The implicit threat is that a return without loan amounts will be seen as incomplete and perhaps open for penalty. A return with loan values shown as income is perhaps an admission of income that has escaped liability.
Remember that this is SELF assessment, so you have to careful.
Throw in Cotter and de Silva so that nobody knows what a return is or is not and we have a brewing recipe for more accusations of HMRC being less than straightforward.
If you get a letter first check that you have not submitted a return or had one submitted on your behalf. If you are in this situation, just tell HMRC that.
If you have NOT submitted a return - GET ADVICE.
The rules here mean that the determination has to be issued before 31/1/16.
The current crop of return requests has a deadline of late November. Expect more.
For those of you who made a return for that period but had no enquiry notice, you will get a letter saying that HMRC has examined 12/13 and have questions that may extend to 11/12 so can they please have some information. Relatively easy to deal with.
For those of you who DID NOT make a return for 11/12 you are likely to get a letter asking you to make a return within 3 months. Failure to do so will result in a section 28C TMA 1970 determination.
The determination is essentially an assessment based on HMRC guesses.
You CANNOT appeal the determination.
You CAN displace it by submitting the return.
However the letter inviting a return starts with a warning that HMRC's Counter Avoidance team believe you have committed tax avoidance. The implicit threat is that a return without loan amounts will be seen as incomplete and perhaps open for penalty. A return with loan values shown as income is perhaps an admission of income that has escaped liability.
Remember that this is SELF assessment, so you have to careful.
Throw in Cotter and de Silva so that nobody knows what a return is or is not and we have a brewing recipe for more accusations of HMRC being less than straightforward.
If you get a letter first check that you have not submitted a return or had one submitted on your behalf. If you are in this situation, just tell HMRC that.
If you have NOT submitted a return - GET ADVICE.
The rules here mean that the determination has to be issued before 31/1/16.
The current crop of return requests has a deadline of late November. Expect more.
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