Incorporated within House:   Data Analysts   Researchers   Chartered Accountants   Revenue Negotiators

Revenue

The Revenue & Customs gather their information from far and wide, they have amazing sources of information, they have your tax return of course and the details supplied by your business accounts, but they would not get very far on just these items.


They have the electoral register so they know who lives where and who pays the rates. They also have information supplied to them regularly by banks, building societies, auctioneers and other institutions about various transactions.

Since the merger of the old Inland Revenue & Customs & Excise departments the new Revenue, HMRC have recently obtained a watershed decision against a high street bank, this decision means that, for the first time details of all credit cards used by a UK resident, with any association with an offshore bank account will be provided to the Revenue.

They also receive tip-offs, every taxpayer has a well-wisher at some time, partners and ex spouses who have privileged information may decide to be a little malicious.
Great weight might not be attributed to such information at first, but no doubt it will raise your profile and can lead to other areas of inquiry, which the Revenue can find profitable.


They also use their initiative.
A long-term favourite is for the Revenue to note the numbers of expensive cars and to check up on the registered owner. If the owner does not show the car in their books or declared income is inconsistent with been able to afford such a car the taxman will be looking into their affairs very closely.

They have accounts and tax returns from every other taxpayer and their inquiries into other people's affairs can lead them to you.

It certainly does not pay to advertise because the Revenue read the adverts too. The lengths the Revenue will go to in this area are quite surprising. Reading the situations vacant, the number of staff engaged, how many gardeners needed for the garden.

However some people really ask for trouble and the Revenue are always there to oblige. How often have you seen a newspaper article, TV interview about a burglary where the victim tells of all the valuable fur coats, jewellery and paintings which have been stolen. The taxman will certainly note what's been stolen and check to see whether they have been notified to him as chargeable assets acquired for capital gains tax purposes or indeed whether declared income of an individual was enough to enable them to buy such items. If not an in-depth inquiry into there affairs will assuredly begin.

The inspectors are trained to be vigilant and it is difficult to conduct many activities without coming to their attention. If you run a business how do you know that the person for whom you do some work is not an inspector, the chances are that they will check that the final bill finds its way into your business accounts.

Market traders are almost bound to have a visit from an inspector, you can even find yourself playing golf or tennis with an inspector. Although they are unlikely to use such an opportunity to interrogate you overtly, various personal details will inevitably come out in conversation. Holidays, your children at school, the overall approach to matters of business. Even if it's only references in a jocular mode.

Post merger, part of the new Revenues operational units are reorganising themselves into trade sectors, which will have gained expertise in a particular trade that has been selected, then they will pursue more enquiries in that particular trade with a greater understanding and increased efficiency.

Risk Intelligence and analysis teams (RIATS) are generating a seam of cases for Inspectors from a central catalogue of risk-profiling projects. A taxpayer can be imported to this area by submitting a late return, not paying tax due on time.

There is a more aggressive approach adopted by HMRC, arguing for higher penalty loadings in all cases. A prosecution team will now pursue all HMRC prosecutions and will always ask for a confiscation order, the Courts are obliged to issue an order in all but the most exceptional circumstances.

Specialist investigation units.

In addition to investigators in Local & District area offices.

Special civil investigations (SCI) will now undertake Code of Practice 8 (cop8)

These cases the Inspector is not alleging serious tax fraud, typically involve tax planning or avoidance, offshore bank accounts cases regularly produce large settlements.

Code of Practice 9 (cop9) Hansard cases are where the Revenue are alleging serious fraud and cover all taxes and circumstances.

Special Investigations Section (SIS)

SIS concentrates its main efforts on investigating Tax avoidance schemes, their intention is to negotiate or litigate the settlement.

Large Business Services (LBS)

Two sections, first one deals with big businesses within the UK, and are becoming more pro-active in opening enquiries, pursuing and issuing information notices. Second deals with PAYE & NIC inspections in large businesses.

 

 
Only the Tip


HMRC Interviews 

A risky, stressful and can be a costly exercise.

A.R.C. will take control and make sure you

Never open
Your mouth
And let
Your brains
fall-out

Please use the Enquiries Form, including a brief summary and any other relevant information.


Initial consultations are free, if you prefer to speak with someone rather than e-mail.


Please contact us on 0116 2244924   appleton@appletonrichardson.co.uk

Branches:-   Ickenham (London)  Glenfield (Leicester)  Spennymoor (Durham)

We operate a strict, highly confidential code of practice.