HMRC chases missing tax returns
Around 220 wealthy taxpayers have received a nudge letter from HMRC requesting submission of tax returns which have not been logged as received.
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Rebecca Cave is now retired from 35 years in the tax world, including eight years as AccountingWEB's consulting tax editor.
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The numbers really are tiny so this is clearly aimed.
HMRC really ought to be setting determinations at outrageous levels to push compliance.
I quite agree. It’s outrageous that determinations haven’t been issue. They were supposed to replace the previous practice of issuing increasingly punitive eastimated assessments.
It's not very clear which taxpayers and/or agents fall within the remit of HMRC’s Wealthy External Forum ... which isn't an operational team (it's a talking shop between some of HMRC's HNW teams and some reps from the PBs).
HMRC’s definition of a wealthy taxpayer is one with an income of at least £200,000 per annum and/or assets of over £2 million - and HMRC say there are c. 700,000 such individuals. BUT you could be in this group with no income other than SP if your house is worth > £2m - and there's a LOT of those in London - so something doesn't stack up here.
Why does this matter (apart from being another example of HMRC making cavalier use of data to paint a misleading story)?
1. The PR is that they are 'serious' about tackling the wealthiest (not just their usual targets of the SME variety) ... but 217 taxpayers out of 700,000 (and probably more) is not exactly a dramatic intervention;
2. As both Paul and Richard have already commented, why just 'nudge' letters? Why so shy of moving to formal Determinations (and leaving the letters so late that Determinations could run out of shelf-life if they're not careful)?
3. Could it be that the unspoken part of this is that they've concentrated on the overseas aspects? "HMRC’s Wealthy External Forum team members are responsible for developing and implementing HMRC's strategy for tax on offshore income and assets".
In short, is there any evidence of anything more than hot air being blown into the shop window?
Sheesh, what's wrong with billy big boots knocking on the mansion door and embarrassing the owner in front of the maid.
18/19 return still o/s with no determinations!
Its pathetic.
Individual circumstances are going to be highly variable. We're currently dealing with the estate of someone whose financial affairs were a total mess: she had inherited a large amount of money 40 years ago, which was wisely invested, but she could hardly read or write and left most of her post unopened. She had no idea how to use a computer or the internet.
Hmm, what about people like our ex self employed plumber client who disappeared off the radar just after we filed 2017 (and was approaching the VAT threshold). I don't believe he has filed anything since but is still to be seen driving around our area in his van............. Not mega rich, but still a lot of tax unpaid.
So how do we know this? Who spilled the beans? Is no one in officialdom embarrassed? Clearly one rule for the rich and untouchable and another for the rest of us sheeple.
if you were the atx inspector, where do you throw the dice on the determination. too high and it will likely be thrown out by a judge, too low and you lose out
is 10x last years income enough or 100x
what if they owe 200m cgt and you only assessed 50k
i guess theres rules to follow on that side of the fence
How are HMRC going about pulling leavers and should they not be reported for inappropriate behaviour?
Before the days of self assessment estimated assessments were issued. If the estimated profits were lower that the actual the tax payer would pay the amount HMRC calculated. When that happened they would invariably raise a further assessment with a much higher estimate which was invariably higher than the actual figures. I don't see why they can't do this now.