I'm willing to take the risk of being accused of scaremongering or worse to tout for business, in order to share some thoughts on post 2011 schemes and what HMRC is doing.
For periods post March 2011, HMRC is looking to issue discovery assessments or section 28 determinations for 2011/12 before the deadline expires on 5th April 2016.
You may well be asked for a tax return if you have not already submitted one, or you may be asked to answer a list of questions within a tight deadline.
DO NOT IGNORE the requests.
If you have an adviser, share the request with them. If you do not have an adviser consider getting one.
Discuss with your adviser how to answer the questions. In particular ask them what their strategy is in answering the questions/completing the return.
Is it to buy time?
Do they have a particular strategy in mind that can be advanced by answering the questions in a particular way? Are the answers formed in order to protect against potential penalties in due course?
What are the risks and potential rewards?
How much are you willing to pay for the above?
Many of you are also getting requests for information (often extensive) for 2012/13 and 2013/14, based on formal section 9A enquiries being in place. Again the above questions are valid.
It is usually a good idea to reply to HMRC even if you have to request an extension in the time allowed.
NEVER EVER state a fact to HMRC that you are unsure of or which you believe to be untrue.
NEVER EVER answer if you really don't know or you do not have and cannot obtain the document, just say so.
NEVER EVER venture an opinion as to how third party arrangements might work unless you have proof.
NEVER EVER advance an opinion as to the likely tax position unless it is the one given to you in writing at the time the arrangement was undertaken.
NEVER EVER allow an adviser to make a statement on your behalf which contravenes the above. You will not be able in this situation to place reliance upon an adviser.
If you use an adviser, ask him/her the questions and probe what you are getting for the fee.
If all you want is to play for time whilst others fight the cause, expect to pay little (time value of money?)
For periods post March 2011, HMRC is looking to issue discovery assessments or section 28 determinations for 2011/12 before the deadline expires on 5th April 2016.
You may well be asked for a tax return if you have not already submitted one, or you may be asked to answer a list of questions within a tight deadline.
DO NOT IGNORE the requests.
If you have an adviser, share the request with them. If you do not have an adviser consider getting one.
Discuss with your adviser how to answer the questions. In particular ask them what their strategy is in answering the questions/completing the return.
Is it to buy time?
Do they have a particular strategy in mind that can be advanced by answering the questions in a particular way? Are the answers formed in order to protect against potential penalties in due course?
What are the risks and potential rewards?
How much are you willing to pay for the above?
Many of you are also getting requests for information (often extensive) for 2012/13 and 2013/14, based on formal section 9A enquiries being in place. Again the above questions are valid.
It is usually a good idea to reply to HMRC even if you have to request an extension in the time allowed.
NEVER EVER state a fact to HMRC that you are unsure of or which you believe to be untrue.
NEVER EVER answer if you really don't know or you do not have and cannot obtain the document, just say so.
NEVER EVER venture an opinion as to how third party arrangements might work unless you have proof.
NEVER EVER advance an opinion as to the likely tax position unless it is the one given to you in writing at the time the arrangement was undertaken.
NEVER EVER allow an adviser to make a statement on your behalf which contravenes the above. You will not be able in this situation to place reliance upon an adviser.
If you use an adviser, ask him/her the questions and probe what you are getting for the fee.
If all you want is to play for time whilst others fight the cause, expect to pay little (time value of money?)
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