I have been busy assisting clients with voluntary disclosures to HMRC under the terms of the requirement to correct legislation for offshore assets. In the run up to 30 September, we were asked to assist a number of clients to ensure that their tax affairs were brought up to date or to double check that everything was in order.
Are there any new rules that are causing a real problem?
With the automatic exchange of information for participating countries, I suspect UK tax advisers are going to become familiar with the extended time limits to assess unpaid tax, as set out in the offshore assets legislation and the stronger sanctions that are now in force. Clients now face greater uncertainty and significantly higher tax-geared penalties. In the most serious and rarer cases, this might seem reasonable; but is it really necessary in the majority of cases?
If you could make one change to tax law or practice, what would it be?
Simplify the time limits for assessing unpaid tax. The offshore assets legislation extended the time limits for assessing unpaid taxes, but what was the purpose of this? We also have the situation where a taxpayer who files returns but omits income and/or gains is less exposed than someone who didn’t register for self-assessment and file the return. The reason for the error may be similar; however, the person that fails to register for SA might have to pay taxes going back up to 20 years, instead of six years for the incorrect returns.
What tax developments are you looking out for in 2019?
I am very interested in the outcome of the Treasury’s review of HMRC’s introduction of the April 2019 loan charge, which is considered to be retrospective legislation and unfairly targeted employers rather than employers. A report is to be published by 30 March on the review undertaken to consider the impact of the legislation and HMRC’s actions. We have acted for a number of individuals that were left in the unenviable position of starting a new role on the basis that they should participate in a subcontractor loan scheme.
HMRC has focused for a number of years on storing electronic data it has collated from both UK and overseas financial institutions. 2019 will be the first year where HMRC will have access to the information exchanged automatically with over 140 countries via the common reporting standard on UK residents with overseas accounts. There are already calls for the data to be published. It will be very interesting to see how HMRC manages to targets the minority that deliberately seek to evade tax, whilst also ensuring that its actions are proportionate and limit the risk of collateral damage.
What is your philosophy to life?
I find the answer to life, the universe and everything is to Keep it Simple. The people I have most enjoyed working with adhered to this philosophy with great success and this perfectly fits with my outlook on work and life. I also think that it is crucial you always aim for a win/win solution or outcome in all negotiations.
And finally, you might not know this about me but…
I have found mindfulness a great way to clear my mind. When I was first introduced to mindfulness I was immediately aware of how impatient I had become, but I have come to greatly appreciate that focus and a clear mind are the keys to success. A pint of Guinness can also achieve the same result I find.
I have been busy assisting clients with voluntary disclosures to HMRC under the terms of the requirement to correct legislation for offshore assets. In the run up to 30 September, we were asked to assist a number of clients to ensure that their tax affairs were brought up to date or to double check that everything was in order.
Are there any new rules that are causing a real problem?
With the automatic exchange of information for participating countries, I suspect UK tax advisers are going to become familiar with the extended time limits to assess unpaid tax, as set out in the offshore assets legislation and the stronger sanctions that are now in force. Clients now face greater uncertainty and significantly higher tax-geared penalties. In the most serious and rarer cases, this might seem reasonable; but is it really necessary in the majority of cases?
If you could make one change to tax law or practice, what would it be?
Simplify the time limits for assessing unpaid tax. The offshore assets legislation extended the time limits for assessing unpaid taxes, but what was the purpose of this? We also have the situation where a taxpayer who files returns but omits income and/or gains is less exposed than someone who didn’t register for self-assessment and file the return. The reason for the error may be similar; however, the person that fails to register for SA might have to pay taxes going back up to 20 years, instead of six years for the incorrect returns.
What tax developments are you looking out for in 2019?
I am very interested in the outcome of the Treasury’s review of HMRC’s introduction of the April 2019 loan charge, which is considered to be retrospective legislation and unfairly targeted employers rather than employers. A report is to be published by 30 March on the review undertaken to consider the impact of the legislation and HMRC’s actions. We have acted for a number of individuals that were left in the unenviable position of starting a new role on the basis that they should participate in a subcontractor loan scheme.
HMRC has focused for a number of years on storing electronic data it has collated from both UK and overseas financial institutions. 2019 will be the first year where HMRC will have access to the information exchanged automatically with over 140 countries via the common reporting standard on UK residents with overseas accounts. There are already calls for the data to be published. It will be very interesting to see how HMRC manages to targets the minority that deliberately seek to evade tax, whilst also ensuring that its actions are proportionate and limit the risk of collateral damage.
What is your philosophy to life?
I find the answer to life, the universe and everything is to Keep it Simple. The people I have most enjoyed working with adhered to this philosophy with great success and this perfectly fits with my outlook on work and life. I also think that it is crucial you always aim for a win/win solution or outcome in all negotiations.
And finally, you might not know this about me but…
I have found mindfulness a great way to clear my mind. When I was first introduced to mindfulness I was immediately aware of how impatient I had become, but I have come to greatly appreciate that focus and a clear mind are the keys to success. A pint of Guinness can also achieve the same result I find.
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