What’s Occurring? Current Letters Being  Sent Out by HMRC

Just to give you a heads up on the range of things that are landing on my desk in the last couple of weeks where it shows you that HMRC are still using the tried and  trusted routes in order to target small traders, but reap large rewards. 

Thousands of enquiries, still go out to people who have been renting out property and never declared it. It never ceases to amaze me how many letters land on my mat or via callers over the phone in a month on this matter. 

But this is not just in the UK. I am frequently now receiving calls from people who have had a letter about a property or a bank account they own abroad. 

Yes we have always had letters from HMRC when they have access to information on peoples bank accounts in the Channel Islands or countries like Spain for example, which is very common. 

But would you believe that HMRC would already have access to countries who have not regularly and historically  shared info with HMRC in the past  for that many years, for example, Latvia,  Estonia and Poland . HMRC told me the other day as part of a Worldwide Disclosure Facility enquiry (See more in my next blog). That they knew my client had a bank account in one of those countries  and they told me to the exact penny how much was in there on a specific date in 2021. 

As the sum was substantial, they wanted to know where the money had come from and a disclosure under the WDF was made and the matter was quickly resolved. 

There was nothing particularly untoward as it involved inheritance, however, it shows you that information is now being shared from far flung countries in Europe and lands on HMRCs own mat, probably about a year after the event. 

This is likely to continue and the evidence they have is what I call ‘hard evidence’ and it’s rare that HMRC  have got it wrong. If you have assets abroad, mainly bank accounts or Property, contact me for a chat to see whether these should go on your tax return or be resolved via voluntary declaration under the WDF – worldwide disclosure facility. Penalties can be exorbitant for these disclosures, but only for early years. If you have something to declare  in the past few years, penalties should be lower, but Lindsay can explain these to you, but just be aware that they can be up to 200% of the tax if you failed to declare them in the appropriate year for that penalty regime.

Enquiries into Dog Breeders have risen their heads again after a few years of intense scrutiny. 

I’ve had two new cases this week alone and sadly breeders – who tend to be 90% women in my experience- still believe that they are carrying out the sale of puppies as no more than a hobby. HMRC certainly do not deem it to be a hobby – that word is not in their vocabulary ! so we need to educate a client  first, settle their nerves  and tackle it head on next!! 

So where do HMRC get your name from – well they ask!! 

They have the right to approach Councils who licence a breeder, The Kennel club, the insurers they use, and the advertising platforms they use like for example g Pets for homes! 

Dog breeders need to come to an experienced  adviser and Lindsay has done dozens of them – so a call to her is your first port of call for claiming everything you have paid out as relevant to your business. 

Don’t bark up the wrong tree – get out of the dog house!!   and ring Lindsay on 07584 706664