Jump to content
House Price Crash Forum
uncle_monty

Revenue Blitz On Top-rate Tax

Recommended Posts

Watch out all. The B'stards are coming for your cash!!! :ph34r::ph34r::ph34r:

HMRC looking to raise approx. £500m in offshore saving tax and £300m from BTL per year. They are looking at a shortfall of £100m on offshore and £200m on BTL. Looks like BTLs are being thrown to the wolves. Couldn't have happened to a more deserving bunch, IMO. :P:P:P:P

Monty

Incidentally, I received a request to complete a tax return this week. First time in 10 years of working (last 5 at six-fugures plus).

Thankfully I have enough info to put up a robust defence of my cash (in fact HMRC owe me £10k - I was prepared to live and let live, but hey, I'll take the cash). The money-grabbing official that targeted me is in for a shock.

Anyone else getting chased for the first time and out of nowhere?

http://www.timesonline.co.uk/tol/money/tax...icle6688598.ece

From The Sunday Times

July 12, 2009

Inland Revenue target top-rate tax avoidance

The Revenue is seeking the power to demand names and addresses of individuals using schemes to avoid paying 50% income tax

High earners, wealthy investors and landlords are set to fall under greater scrutiny following sweeping changes to tax rules proposed by the government last week.

The Revenue is seeking extraordinary powers that would, if granted, compel accountants to disclose the names and addresses of clients who take up schemes to avoid the top rate of income tax, which is due to increase to 50% in April next year.

The spotlight will also fall on thousands of landlords after the taxman proposed measures to force lettings agents to reveal details of all previous clients.

Under current rules, the Revenue can only ask lettings agents to disclose landlords for whom they currently collect rent. It is now seeking to extend its powers to agencies that have introduced a tenant to a landlord for a fee in the past, even if rent is now paid directly to the landlords. The Revenue estimates that 10% of landlords who use lettings agents do so on an introduction-only basis.

“A power that included such transactions and the addresses they relate to would allow HMRC to make sure that people with income from letting property pay the right tax,†the Revenue said.

Peter Bolton King of the UK Association of Letting Agents, said: “While this push by the Revenue has the potential to catch a lot more landlords out, it will also create a lot more work for agents in terms of their record keeping.â€

The proposed crackdown will also hit higher earners seeking to avoid 50% tax — or 51.5% with National Insurance contributions included.

Last week, The Sunday Times revealed that Grant Thornton, the accountant, has been marketing a scheme to bankers and hedge-fund employees to beat the 50% tax rate. It would allow workers to take a specified amount of share options in lieu of a cash bonus, on which they would pay capital-gains tax (CGT) rather than income tax.

However, the Revenue is seeking a “new specialist information power,†according to documents on its website last week. This would allow it to demand that accountants reveal the names and addresses of all individuals using such schemes.

John Whiting of the Chartered Institute of Taxation, said: “It is one thing to ask accountants to tell them about schemes, but they want to know who’s using them too. The Revenue can then see if it is going to a lot of people and, depending on the sort of people it is going to, this will help the Revenue decide if they should block it.â€

The consultation on the new powers ends in October, so they could be in force for the new tax year. The Revenue will also have “blacklist†powers from next April, to coincide with the end of the second amnesty for offshore account holders which will run from September to March.

Both offshore taxpayers and landlords could find themselves on the blacklist if they have understated their tax by £25,000 or more.

Buy-to-let landlords are being urged to come forward if they have undisclosed rental income. A Revenue spokesman said: “This will help mitigate penalties which may apply to those who have unpaid tax in the past.â€

If you have rental income of £1,000 a month but your interest repayments are £800, you would be liable for tax on only £200, assuming you make no other deductions.

Edited by uncle_monty

Share this post


Link to post
Share on other sites
Incidentally, I received a request to complete a tax return this week. First time in 10 years of working (last 5 at six-fugures plus).

You're seriously stuffed. I hope you've put a pile by and have a good tax lawyer.

Share this post


Link to post
Share on other sites
You're seriously stuffed. I hope you've put a pile by and have a good tax lawyer.

Au contraire. Paid my 40%, NI, etc via PAYE.

HMRC owes me tax back on pension contributions. As I said, I was prepared to overlook the claim to avoid the hassle of filling a tax returns. But since I am forced to do so, I may as well trouser the five figures coming my way.

Share this post


Link to post
Share on other sites
Au contraire. Paid my 40%, NI, etc via PAYE.

HMRC owes me tax back on pension contributions. As I said, I was prepared to overlook the claim to avoid the hassle of filling a tax returns. But since I am forced to do so, I may as well trouser the five figures coming my way.

I'm still amazed you have got away so long without having to do a tax return.

I'm on similar sorts of money and they buggers never leave me alone, though to be honest my tax affairs are pretty simple and straight forward, so perhaps to a lazy, targets obsessed organisation its an easy tick in the box.

Share this post


Link to post
Share on other sites
I'm still amazed you have got away so long without having to do a tax return.

I'm on similar sorts of money and they buggers never leave me alone, though to be honest my tax affairs are pretty simple and straight forward, so perhaps to a lazy, targets obsessed organisation its an easy tick in the box.

HMRC is getting desperate, perhaps?

Not sure the deficit can be funded by just going for the top-rate tax band though. This one's going to bruise everybody............

Share this post


Link to post
Share on other sites
I'm not going to bother filling a tax return in anymore. I want to see what they try and do.

Or I will fill one in and put 0 on it.

Or

Send the form back with black rectangles covering (redacting) most of the pertinent information

Share this post


Link to post
Share on other sites
Incidentally, I received a request to complete a tax return this week. First time in 10 years of working (last 5 at six-fugures plus).

Thankfully I have enough info to put up a robust defence of my cash (in fact HMRC owe me £10k - I was prepared to live and let live, but hey, I'll take the cash). The money-grabbing official that targeted me is in for a shock.

Fill the form online! It's very (surprisingly) simple, and it even works!

Since you evidently aren't bothered about the cash - and it sounds as if you have plenty - donate it to your choice of charity, get a receipt, and use that to reduce your next-year's tax liability. You've lost nothing, and your money has gone somewhere better than the chancellor!

Share this post


Link to post
Share on other sites
Watch out all. The B'stards are coming for your cash!!! :ph34r::ph34r::ph34r:

HMRC looking to raise approx. £500m in offshore saving tax and £300m from BTL per year. They are looking at a shortfall of £100m on offshore and £200m on BTL. Looks like BTLs are being thrown to the wolves.

I fail to see how an initative to collect tax from people who ought to have been paying it but somehow forgot :rolleyes: to pay, is being "thrown to the wolves".

tim

Share this post


Link to post
Share on other sites

I got a letter 2 years ago SCREEMING that i might have not paid Tax on my offshore bank a/c........."Pay now or DIE!" sort of thing.............they then gave another warning via the MSM that "THey were coming"..................2 years latter i heard no more.

Mike

Share this post


Link to post
Share on other sites
I'm not going to bother filling a tax return in anymore. I want to see what they try and do.

Or I will fill one in and put 0 on it.

They will do nothing if you have no income (via a pay check that is) or assets.

Share this post


Link to post
Share on other sites

They make up a number for what they think you might owe and chase you for that. Search HMRC Determination made up number my blood is boiling, or something like that, if you want information on being on the receiving end of the process.

Interestingly enough, although you won't have to pay anything apart from the court costs, a CCJ will still stick if you put the tax return in more than 28 days after a judgement.

Share this post


Link to post
Share on other sites
Au contraire. Paid my 40%, NI, etc via PAYE.

HMRC owes me tax back on pension contributions. As I said, I was prepared to overlook the claim to avoid the hassle of filling a tax returns. But since I am forced to do so, I may as well trouser the five figures coming my way.

Yeah, but did you pay 40% on your bank interest as well ? If so how if you weren't filling in a self assessment return ?

HMRC are like the terminator, they keep on coming and nothing can stop them.

And yes, they are getting more aggressive. Not suprising really, considering the do do the government is in.

Share this post


Link to post
Share on other sites
Yeah, but did you pay 40% on your bank interest as well ? If so how if you weren't filling in a self assessment return ?

You would be surprised at the number who pay 40% on and above the tax band for 40%. But what they fail to understand through either ignorance, sheer luck or stupidity is they should be paying 40% on their savings interest, but do they, oh no, the HMRC are seriously under manned in this area i bet? But to collect could be difficult, as they would have to go after all and sundry who earn and pay 40%, then chack against whether they spend it all, or have a big savings stash, then check where, how much, and whether they have filled in a self assesment, bet not mostly?

Not my problem, nice one to have though?

Edited by Panda

Share this post


Link to post
Share on other sites
Yeah, but did you pay 40% on your bank interest as well ? If so how if you weren't filling in a self assessment return ?

HMRC are like the terminator, they keep on coming and nothing can stop them.

And yes, they are getting more aggressive. Not suprising really, considering the do do the government is in.

No savings till I STRd. First annual bonus I "saved" went straight into deposit for a house. Lived a ridiculous life in younger years, but enjoyed it immensely :P

Agree the government is getting increasingly desperate / aggressive.

Share this post


Link to post
Share on other sites
You would be surprised at the number who pay 40% on and above the tax band for 40%. But what they fail to understand through either ignorance, sheer luck or stupidity is they should be paying 40% on their savings interest, but do they, oh no, the HMRC are seriously under manned in this area i bet? But to collect could be difficult, as they would have to go after all and sundry who earn and pay 40%, then chack against whether they spend it all, or have a big savings stash, then check where, how much, and whether they have filled in a self assesment, bet not mostly?

Not my problem, nice one to have though?

20% is usually deducted at source (at the bank). So that reduces it. Plus anyone who has any serious money probably isn't just leaving it in a bank account to generate a pittance in interest. For example dividends are subject to reduced tax.

You'd be surprised at the number of people I have heard that argue aggressively that their savings aren't taxable in this way. Also that "it's the Revenues responsibility to tell me I need to pay it".

The problem comes of course when you retire, when you have to fill out a self assessment form, or when the Revenue comes after you for something else. Then this is just one extra thing to nail you with.

I suspect that if they simply sent a warning letter to all top rate tax payers once per year about their obligations they would probably get more extra money than it would cost. Given their propensity to send out reams of paper work at the drop of a hat I'm surprised they don't do this already.

You'd think as well with all those billions they spend on IT they would be able to extract the NI numbers of all top rate taxpayers, correlate those with bank account details (maybe it is not obligatory to provide an NI number with a bank account, so long since I opened one I don't remember) and find out who's not paying.

Share this post


Link to post
Share on other sites
Watch out all. The B'stards are coming for your cash!!! :ph34r::ph34r::ph34r:

HMRC looking to raise approx. £500m in offshore saving tax and £300m from BTL per year. They are looking at a shortfall of £100m on offshore and £200m on BTL. Looks like BTLs are being thrown to the wolves. Couldn't have happened to a more deserving bunch, IMO. :P:P:P:P

Monty

Incidentally, I received a request to complete a tax return this week. First time in 10 years of working (last 5 at six-fugures plus).

Thankfully I have enough info to put up a robust defence of my cash (in fact HMRC owe me £10k - I was prepared to live and let live, but hey, I'll take the cash). The money-grabbing official that targeted me is in for a shock.

Anyone else getting chased for the first time and out of nowhere?

http://www.timesonline.co.uk/tol/money/tax...icle6688598.ece

From The Sunday Times

July 12, 2009

Inland Revenue target top-rate tax avoidance

The Revenue is seeking the power to demand names and addresses of individuals using schemes to avoid paying 50% income tax

High earners, wealthy investors and landlords are set to fall under greater scrutiny following sweeping changes to tax rules proposed by the government last week.

The Revenue is seeking extraordinary powers that would, if granted, compel accountants to disclose the names and addresses of clients who take up schemes to avoid the top rate of income tax, which is due to increase to 50% in April next year.

The spotlight will also fall on thousands of landlords after the taxman proposed measures to force lettings agents to reveal details of all previous clients.

Under current rules, the Revenue can only ask lettings agents to disclose landlords for whom they currently collect rent. It is now seeking to extend its powers to agencies that have introduced a tenant to a landlord for a fee in the past, even if rent is now paid directly to the landlords. The Revenue estimates that 10% of landlords who use lettings agents do so on an introduction-only basis.

“A power that included such transactions and the addresses they relate to would allow HMRC to make sure that people with income from letting property pay the right tax,†the Revenue said.

Peter Bolton King of the UK Association of Letting Agents, said: “While this push by the Revenue has the potential to catch a lot more landlords out, it will also create a lot more work for agents in terms of their record keeping.â€

The proposed crackdown will also hit higher earners seeking to avoid 50% tax — or 51.5% with National Insurance contributions included.

Last week, The Sunday Times revealed that Grant Thornton, the accountant, has been marketing a scheme to bankers and hedge-fund employees to beat the 50% tax rate. It would allow workers to take a specified amount of share options in lieu of a cash bonus, on which they would pay capital-gains tax (CGT) rather than income tax.

However, the Revenue is seeking a “new specialist information power,†according to documents on its website last week. This would allow it to demand that accountants reveal the names and addresses of all individuals using such schemes.

John Whiting of the Chartered Institute of Taxation, said: “It is one thing to ask accountants to tell them about schemes, but they want to know who’s using them too. The Revenue can then see if it is going to a lot of people and, depending on the sort of people it is going to, this will help the Revenue decide if they should block it.â€

The consultation on the new powers ends in October, so they could be in force for the new tax year. The Revenue will also have “blacklist†powers from next April, to coincide with the end of the second amnesty for offshore account holders which will run from September to March.

Both offshore taxpayers and landlords could find themselves on the blacklist if they have understated their tax by £25,000 or more.

Buy-to-let landlords are being urged to come forward if they have undisclosed rental income. A Revenue spokesman said: “This will help mitigate penalties which may apply to those who have unpaid tax in the past.â€

If you have rental income of £1,000 a month but your interest repayments are £800, you would be liable for tax on only £200, assuming you make no other deductions.

Lol they sent me one for first time this year too...they owe me £4000...

Thanks lol...

Share this post


Link to post
Share on other sites
I fail to see how an initative to collect tax from people who ought to have been paying it but somehow forgot :rolleyes: to pay, is being "thrown to the wolves".

tim

Exactly...I went to see a BTL the other day...done through owner....asked about deposit scheme she would be using...No idea she said..

I doubt she has registered anything to HMRC or paid any tax on her btl....ever....

Share this post


Link to post
Share on other sites
Watch out all. The B'stards are coming for your cash!!! :ph34r::ph34r::ph34r:

HMRC looking to raise approx. £500m in offshore saving tax and £300m from BTL per year. They are looking at a shortfall of £100m on offshore and £200m on BTL. Looks like BTLs are being thrown to the wolves. Couldn't have happened to a more deserving bunch, IMO. :P:P:P:P

Monty

Incidentally, I received a request to complete a tax return this week. First time in 10 years of working (last 5 at six-fugures plus).

Thankfully I have enough info to put up a robust defence of my cash (in fact HMRC owe me £10k - I was prepared to live and let live, but hey, I'll take the cash). The money-grabbing official that targeted me is in for a shock.

Anyone else getting chased for the first time and out of nowhere?

http://www.timesonline.co.uk/tol/money/tax...icle6688598.ece

From The Sunday Times

July 12, 2009

Inland Revenue target top-rate tax avoidance

The Revenue is seeking the power to demand names and addresses of individuals using schemes to avoid paying 50% income tax

High earners, wealthy investors and landlords are set to fall under greater scrutiny following sweeping changes to tax rules proposed by the government last week.

The Revenue is seeking extraordinary powers that would, if granted, compel accountants to disclose the names and addresses of clients who take up schemes to avoid the top rate of income tax, which is due to increase to 50% in April next year.

The spotlight will also fall on thousands of landlords after the taxman proposed measures to force lettings agents to reveal details of all previous clients.

Under current rules, the Revenue can only ask lettings agents to disclose landlords for whom they currently collect rent. It is now seeking to extend its powers to agencies that have introduced a tenant to a landlord for a fee in the past, even if rent is now paid directly to the landlords. The Revenue estimates that 10% of landlords who use lettings agents do so on an introduction-only basis.

“A power that included such transactions and the addresses they relate to would allow HMRC to make sure that people with income from letting property pay the right tax,†the Revenue said.

Peter Bolton King of the UK Association of Letting Agents, said: “While this push by the Revenue has the potential to catch a lot more landlords out, it will also create a lot more work for agents in terms of their record keeping.â€

The proposed crackdown will also hit higher earners seeking to avoid 50% tax — or 51.5% with National Insurance contributions included.

Last week, The Sunday Times revealed that Grant Thornton, the accountant, has been marketing a scheme to bankers and hedge-fund employees to beat the 50% tax rate. It would allow workers to take a specified amount of share options in lieu of a cash bonus, on which they would pay capital-gains tax (CGT) rather than income tax.

However, the Revenue is seeking a “new specialist information power,†according to documents on its website last week. This would allow it to demand that accountants reveal the names and addresses of all individuals using such schemes.

John Whiting of the Chartered Institute of Taxation, said: “It is one thing to ask accountants to tell them about schemes, but they want to know who’s using them too. The Revenue can then see if it is going to a lot of people and, depending on the sort of people it is going to, this will help the Revenue decide if they should block it.â€

The consultation on the new powers ends in October, so they could be in force for the new tax year. The Revenue will also have “blacklist†powers from next April, to coincide with the end of the second amnesty for offshore account holders which will run from September to March.

Both offshore taxpayers and landlords could find themselves on the blacklist if they have understated their tax by £25,000 or more.

Buy-to-let landlords are being urged to come forward if they have undisclosed rental income. A Revenue spokesman said: “This will help mitigate penalties which may apply to those who have unpaid tax in the past.â€

If you have rental income of £1,000 a month but your interest repayments are £800, you would be liable for tax on only £200, assuming you make no other deductions.

I close down my company every two years and start a new one to try and throw the bottom dwellers off the scent. I also pay insurance so that if they come for me they'll be dealing with a tax specialist instead of trying to intimidate and threaten me.

Don't remember having to do either of those two things under a Tory Government.

Share this post


Link to post
Share on other sites
I close down my company every two years and start a new one to try and throw the bottom dwellers off the scent. I also pay insurance so that if they come for me they'll be dealing with a tax specialist instead of trying to intimidate and threaten me.

Don't remember having to do either of those two things under a Tory Government.

Who might provide such a service? Chamber of Commerce type people?

It's time to get tooled up methinx.

Share this post


Link to post
Share on other sites

As a tax accountant I would urge all of you to comply with the letter of the law when completing your tax returns and paying what is due under the law; not a penny more, not a penny less, as a certain Lord once said.

On the topic, there is a good chance this will backfire bigtime. In the '80's when I was a lot younger and more naive, I got hooked by a gorgeous girl and was roped into doing the tax for all my now ex-wife's family and many of their friends, all of whom thought they had been dodging the taxman for years; turned out IR owed them money - tens of thousands in one case (before you lot start, they were mainly in the building game but quite high profile in their local area, on big sites/jobs and mostly VAT registered so I think they were mainly legit, but they all abused the main ressidence exemption for all it was worth). And this was for the most part because they didn't appreciate that interest was deductible...............................for how much longer eh?

Edit - sp.

Edited by bagsos

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   292 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.