Channel 4 aired ‘Catching the tax dodgers‘ last night, a fly on the wall documentary revealing, for the first time on TV, the methods use by HMRC when investigating who is and who isn’t paying tax and how those individuals are targeted.
What was enlightening was the admission that there is now an increased drive to pursue smaller offenders. The program detailed the prosecution of a small limited company director who narrowly avoided jail for failing to both submit correct VAT information and make payments on time.
This was in contrast to a high net wealth individual who openly admitted to deliberately concealing wealth offshore in a Swiss bank account over some twenty years. This gentleman made a disclosure under the now defunct Liechtenstein Facility which allowed immunity from any criminal prosecution, and afforded him a time to pay arrangement for back dated tax, fines and penalties.
There were some intriguing shots of the new Connect system, which seems more akin to CIA terror group mapping software, showing links and associations with individuals, properties, financial dealings and much more.
I think what is very clear form this documentary is the fact that no one is immune form investigation. Regardless of how vanilla your tax affairs may be, a HMRC investigation can be time consuming and expensive.
We offer Fee Protection cover to all clients FREE of charge. This will cover you in the event of an enquiry, ensuring you do not have additional professional costs during what can be a stressful period.
HMRC estimate that there is a £34 billion ‘Tax Gap’, this is an amount owed but not being collected. Through enquiries, and mainly the new Connect system HMRC are targeting the collection of £26 billion of this perceived gap and have spent some £80 million developing the system and integrations to ensure this is achievable.
In the unfortunate event you are selected for investigation, as a client of F9 you can relax safe in the knowledge that there will be no professional fees to pay.
Our protection covers you to the equivalent of £100,000 and will provide representation across all matters. You should be aware anyone can be selected for investigation, a Director, Individual Tax Payer or Business. Does your current account provide the cover you need?
Contact us today for a FREE consultation, we have Chartered Accountants and Chartered Tax Advisors waiting to speak to you in Brentwood, Canary Wharf and Manchester.