First steps in HMRC’s crackdown on tax avoiders
HMRC has now issued (by way of a list of 1,200 scheme numbers - no names, no details) the tax planning arrangements entered into where it intends to collect the tax allegedly saved from the individuals and companies who participated in the planning. (The accelerated payments provisions in this year's Finance Bill - due to be enacted this week.) Those affected will, at some stage within the next 20 months, this appears to be HMRC's estimated timetable to complete the exercise, receive a demand for payment of the tax within 90 days.
As yet there is no indication of the order in which arrangements will be targeted so everyone will just have to wait - the sword of Damocles comes to mind!
There is an indication that HMRC may notify of their intention to write and request payment, giving an extra few weeks notice but this is not yet confirmed.
A lot of people and businesses are going to be affected, apparently around 33,000 individuals / unincorporated businesses and 10,000 companies and, if HMRC's estimates are correct, the tax at stake is around ?7 billion!
Some decisions now need to be made.
Date: 17th July, 2014
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