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Covering letter for disclosure
...but we all (many of us because we are being required to) file on line now, we don't send covering letters!!
So next year........
they will insert another question in all the company returns that will enable them to use their computer analysis tools - inadequate as they have always been - to filter out all the people (or should it be filter in) that they can now investigate once they achieve retrospect legislation to add more money into GB's coffers. A tax return is a document that is supposed to establish THAT person's tax liabilities and not those of connected person's. Mind you I suppose if you answer the question honestly and fully on the company tax return there could never me any discovery in the future regarding a director's earnings/dividends - no longer will HMRC be able to hide behind the defence that something entered on one person's tax return held "somewhere in their vaults" has no relevance to another's
http://www.wamstaxltd.com
It might not be just the service co question
Since writing my original article, I have been referred to other questions on the tax return that could be susceptible to a similar challenge - at least this year.
For example, the additional questions on the non-residents' pages concerning the number of days in the UK.
In short, a return is intended to establish a person's liability to tax not to provide filters so that HMRC can identify whom to investigate.
On the other hand, advisers should not forget the considerable advantages in providing full information on a return so as to reduce the risks of a discovery assessment (or to increase the chances of being able to challenge such a discovery assessment).
However, my advice would be to provide all such information in a white-space disclosure/covering letter, rather than in boxes that are undoubtedly linked to HMRC's risk-assessment software.