|Tips by WAMS - Secrets and Pointers to avoid by Bill Stevenson
There are some common beliefs that will just get you in trouble
This page gives pointers to help individuals and others to avoid the full HMRC whip being wielded
on you and have been used by himself in enquiries from time to time.
Remember strategies are case specific so you need the experience or expertise of Bill to apply
them in your own case. Unless you become a client nothing on this page constitutes tax advice
Phone Bill for help if you think you need to make a disclosure
24/7 mobile - 07751 720 507
Avoid the tax enquiry and severest penalties -
So the tax expert in the pub said that if you have your own company or business you can
put expenses - including VAT through the business (reclaiming VAT if you are VAT
This is very dangerous if the expenses aren't wholly and exclusively for business purposes.
If you/your accountant do the work right at the end of the year it causes extra work (and time
means fees) as these items need to be disallowed in the accounts tax computations.
If however they are left in as deductions in arriving at the tax profits it can trigger enquiries
into the accounts and possibly an investigation.
The temptation to put private expenses through the business should be resisted
at all costs as it will cost you dear.
Also HMRC always suggest that this type of error falls into the severest category of civil
penalties - being deliberate and concealed warranting a minimum penalty of 50%
(and maximum 100%) if they catch you before you make a disclosure.
If you can get in first then you stand the chance of getting off with a min. 35% penalty.
So to get a straight 15% reduction in any potential penalty contact Bill on 07751720507 to
discuss making a voluntary disclosure.
Prompted or Unprompted Disclosure -
One of Bill's strategies (whether leading or giving advice to professionals) that is adopted
in taking on an investigation is to make a comprehensive review of the client's (individual,
company or partnership etc) case and identifying ALL material omissions;
understatements or failures with a view to bringing them out in the open before HMRC
become aware of issues beyond the current year.
This can reap worthwhile rewards including an immediate minimum penalty reduction of
15% for years outside the HMRC enquiry year.
It also helps to let HMRC know that you mean business and enables you to take the lead in
the enquiry as opposed to the usual of HMRC thinking that they are wearing the big
"tackety" boots on their foot and you were trying to keep matters secret and not helping.
Even better of course if you go forward before they catch you in the first place. Ring Bill on
07751720507 for a short free chat if you think you can benefit from Bill being your tax
investigation specialist. It works to save you money and don't be put off by the low fee rate
as compared with other investigation specialists.
Watch out the Kids are about -
If you have invested monies in your minor children's name watch out if the interest income
is more than £100 per annum as it will still be chargeable on yourself. HMRC know about
all UK bank accounts (and nowadays a lot of offshore or foreign accounts) where interest
has been credited and therefore if you leave any interest off your tax return you are just
inviting an HMRC tax enquiry into your personal tax return (and if you are a director or
shareholder or sole trader you can expect them to get intrusive and look into your business
for the evaded income you thought you had hidden in children's bank accounts
Remember Bill can only advise you on any particular strategy if you become a client. Also as
he has ethics (surprising for an Ex HMRC INspector we hear you say) he will not steal a client
from another professional. However he can easily assist any individual or professional
without becoming the day to day agent for a client so don't be afraid to contact Bill for an
initial free chat.
Tax doesn't have to be stressful BUT IT IS - Let Bill help phone 07751 720 507
Annual Seasonal or Xmas Gifts -
You can now buy your Xmas presents tax free through your limited company as long as the total
doesn't exceed a "reasonable" amount per person (WAMS thinks <£50 usually acceptable) and
£300 a year in total. Read more
Each Investigation has its own dangers and opportunities that require full and detailed considerations and advice. No
responsibility can be taken for any actions that the reader decides to take (or not take) after reading the text and articles
unless you engage with the company and Bill Stevenson on a proper fee paying client/tax adviser basis.
The personal views of Bill set out on this page do not constitute tax advice and are presented for enjoyment only by the
WAMS Tax Ltd - Bill Stevenson - 07751 720 507
Be very careful if two HMRC officers turn up with an authority to inspect your records WITHOUT
making a prior appointment and or going through your accountant.
This is a dangerous situation as clearly they consider that if they gave you warning of the visit
evidence would be "missing" showing that you had been guilty of carelessness or deliberate
conduct in relation to your tax evasion - or even worse that you have been guilty of tax fraud. They
might also just be trying to steal a march on your tax evasion by catching you unawares.
Do not try and deal with this yourself as HMRC officers tend to abuse their powers in this
situation - possibly "innocently" or through lack of knowledge to their own rules.
There are challenges in this for even the most experienced of investigation specialists so you need
to take advice as soon as possible from somebody that knows what to do. There are also ways of
dealing with matters that can level the playing field so contact Bill on 07751720507