Settlement Opportunity

[AnotherContractor]

No it means years for which you have either an open enquiry or an appeal against a discovery assessment.

Thanks for the clarification
But according to the Q&A leaflet HMRC can still open a new query 6 years previous from 2010/11 ?

[eek]

Afternoon, first ever post so apologies for it being a question.

I do not understand the mention of IHT in the offer letter from HMRC. I appreciate that IHT has a £325k threshold but for argument's sake lets say we are above this threshold: do they plan on calculating a charge to IHT AND to Income Tax on the same funds?

I think its quite simple. HMRC think that you owe them money. One way or another they will try and get money from you and IHT is one tactic they have identified could be used if other attacks fail...

However I don't think anyone knows how HMRC want to use it....

[dezze]

Thanks for the clarification
But according to the Q&A leaflet HMRC can still open a new query 6 years previous from 2010/11 ?

I'm unclear about the time limits for all this. There is the provision for going back 20 years, but is based on;

1. brought about deliberately by the person
2. attributable to a failure to notify liability under Section 7, or
3. attributable to a tax avoidance scheme which is a notifiable arrangement or a listed or hallmarked scheme and the user of the scheme failed to disclose details to HMRC at the proper time.

Not sure if the first DOTAS number was used in 2004/5 or 2005/6. What happens about the schemes before that, that didn't have DOTAS numbers? Does this fall under point 3. ? If so, how would you have 'disclosed details' when you didn't know details had to be disclosed?

I've search for 'Section 7' and can't find it - sorry, does anyone know?

[malvolio]

I'm unclear about the time limits for all this. There is the provision for going back 20 years, but is based on;

1. brought about deliberately by the person
2. attributable to a failure to notify liability under Section 7, or
3. attributable to a tax avoidance scheme which is a notifiable arrangement or a listed or hallmarked scheme and the user of the scheme failed to disclose details to HMRC at the proper time.

Not sure if the first DOTAS number was used in 2004/5 or 2005/6. What happens about the schemes before that, that didn't have DOTAS numbers? Does this fall under point 3. ? If so, how would you have 'disclosed details' when you didn't know details had to be disclosed?

I've search for 'Section 7' and can't find it - sorry, does anyone know?

How hard was that...?

Basically it's saying you're the taxpayer, it's up to you as the core principle of Self Assessment to tell HMRC about any taxable income you get each year, even if you don't normally fill in an SAR. As you have discovered, this is difficult if you don't know you have something to tell them, but sadly that is not an excuse.

[dezze]

How hard was that...?

Basically it's saying you're the taxpayer, it's up to you as the core principle of Self Assessment to tell HMRC about any taxable income you get each year, even if you don't normally fill in an SAR. As you have discovered, this is difficult if you don't know you have something to tell them, but sadly that is not an excuse.

Thank you.

[FTTM]

N.I.C.

It seems fairly clear from the letter received that one of the benefits implied is that National Insurance Contributions will not be levied if you settle but they will pursue these under ToAA if you choose to fight and lose. With interest on NI as well this could make a difference of 20-30% on the final bill. Does anyone else agree?

[Rob79]

I'm unclear about the time limits for all this. There is the provision for going back 20 years, but is based on;

1. brought about deliberately by the person
2. attributable to a failure to notify liability under Section 7, or
3. attributable to a tax avoidance scheme which is a notifiable arrangement or a listed or hallmarked scheme and the user of the scheme failed to disclose details to HMRC at the proper time.

Not sure if the first DOTAS number was used in 2004/5 or 2005/6. What happens about the schemes before that, that didn't have DOTAS numbers? Does this fall under point 3. ? If so, how would you have 'disclosed details' when you didn't know details had to be disclosed?

I've search for 'Section 7' and can't find it - sorry, does anyone know?

HMRC tend to use 20 year time limits for the more extreme cases of fraud. Normally this would require the serving of a notice (COP 8 etc) and as far as I can see, nobody has had that suggested?

DOTAS numbers came into being in August 2004 but implementation was largely delayed until April 2006. Any scheme in place before the DOTAS regime was underway was not obliged to register. The extent tom which this "grandfathering" could be pushed varied from provider to provider.

Self assessment and DOTAS have a very uneasy relationship. You have nailed the central conundrum here. It is a prime tenet of UK tax law that the onus is upon the recipient of income who considers that he has a tax liability to volunteer that information. Failure to do so is an automatic penalty.

With DOTAS, failure to provide a reference number carries a penalty. However if there is no reference number (pre DOTAS or grandfathered) then there can be no penalty. Even if a scheme is subsequently caught by a "discovery" or change of interpretation or retrospective change of law, there can be no penalty for not disclosing a DOTAS number if none was ever given.

[Boobetty]

It seems fairly clear from the letter received that one of the benefits implied is that National Insurance Contributions will not be levied if you settle but they will pursue these under ToAA if you choose to fight and lose. With interest on NI as well this could make a difference of 20-30% on the final bill. Does anyone else agree?

I think your % is high. Are you including employer's and employee's NIC together? Employees is a mere 12% up to whatever the upper limit is and 2% thereafter. As an employee we are only responsible for the employee contribution. I do not think that HMRC can pursue us for employer's NIC.

[dezze]

HMRC tend to use 20 year time limits for the more extreme cases of fraud. Normally this would require the serving of a notice (COP 8 etc) and as far as I can see, nobody has had that suggested?

DOTAS numbers came into being in August 2004 but implementation was largely delayed until April 2006. Any scheme in place before the DOTAS regime was underway was not obliged to register. The extent tom which this "grandfathering" could be pushed varied from provider to provider.

Self assessment and DOTAS have a very uneasy relationship. You have nailed the central conundrum here. It is a prime tenet of UK tax law that the onus is upon the recipient of income who considers that he has a tax liability to volunteer that information. Failure to do so is an automatic penalty.

With DOTAS, failure to provide a reference number carries a penalty. However if there is no reference number (pre DOTAS or grandfathered) then there can be no penalty. Even if a scheme is subsequently caught by a "discovery" or change of interpretation or retrospective change of law, there can be no penalty for not disclosing a DOTAS number if none was ever given.

Can HMRC apply the 20 year rule pre DOTAS? How would the taxpayer back (and it's 10 years ago now) then know that they 1. 'consider they have a tax liability' and therefore declare the scheme, and 2. how would they have done it?

[convict]

lots of talk re 4/6/20