For a couple of issues I have been dealing with recently I have been unable to find definitive answers to how HMRC would treat a transaction. Is there any reason why you would not want to contact HMRC's technical team for a definitive answer?
For example, make you look like you are trying to be clever with the rules, so they would earmark you as promoting tax avoidance?
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There is no facility to do so unless you fall within either (a) a statutory or (b) non statutory clearance procedures - see guidance at https://www.gov.uk/guidance/non-statutory-clearance-service-guidance. The non statutory procedure only applies where you can demonstrate that there is genuine uncertainty about how the law should be interpreted and you have tried but failed to find the answer in published guidance. In general terms in a system of self assessment HMRC expect you to come to your own conclusions about how the tax statutes should be interpreted, and pay for specialist advice to help you come to that view where necessary.
Thanks Michael, I wasn't aware of the non-statutory procedure. However, is it not possible to write to a HMRC department to clarify a technical point (not specifically asking for clearance)? There is an email for the pensions team ([email protected]) and an address for the stamp duty team (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/s...)
It depends on the nature of the query. I have, for example, contacted the International Team and the Creative Industries Team for clarification on certain issues. Unusually for HMRC, both those teams are very helpful and (appear to) know their stuff.
You can also contact the VAT Helpline to clarify technical points - the difference in that case being that you should do the exact opposite of what they advise.
Not to my knowledge, and even if you could find a helpful contact as Ruddles suggests you would not be able to rely upon the opinion given unless you had made a full disclosure of all the facts, and the reasons why the issue causes difficulty. The appropriate specialist TaxAction (or another suitably qualified specialist elsewhere, or perhaps tax counsel) will give you a definitive reply, if the matter is capable of one.
You can call HMRC on a no names basis. If a technical adviser has to call you back then you may need to give your name and number but they wouldn't ask for your agent reference. You also wouldn't need to disclose your client's details.
HMRC is not the right place to obtain comfort on tax structuring. If you are not comfortable providing tax opinions then outsource the work to an advisory firm or call a tax helpline if you have one. We currently use Croner Taxwise for checking tax law and for a fee they can either review or provide a tax opinion, there are other options such as Nichola Ross Martin.
Or post on here, it is a good sounding board to determine the viability of any structuring.
Seconded - my order of research would be:
1. Online research into matter
2. Test theory (or ask for advice) on AWeb
3. Use a helpline (I use TaxAction, but there are many others such as Croners or NRM as previously mentioned).
I wouldn’t approach HMRC for anything- in my experience the best you’ll get is someone reading the guidance and saying something non-commital such as “it looks like ...” or more commonly “guidance suggests/indicates”.
I have used Abbey Tax in the past, which I have found better than HMRC, but still not definitive on a number of issues. Are Croners/NRM/Tax action always definitive?
I am subcribed to Ross Martin, but not used there helpline yet.
I have used Abbey Tax in the past, which I have found better than HMRC, but still not definitive on a number of issues. Are Croners/NRM/Tax action always definitive?
I am subcribed to Ross Martin, but not used there helpline yet.
I have used an HMRC technical office for a view (not clearance) on interpretation of legislation in the past without issue. (At that point, there was a disagreement here about how the legislation applied, hence going to HMRC for a view).