HMRC publications and powers Flashcards
Why does HMRC publish statements of practice?
To explain HMRC’s interpretation of a particular tax law.
What is an extra-statutory concession?
Relaxations of the tax law for specific taxpayers to resolve anomalies and relieve hardship.
What is an HMRC compliance check?
An inquiry into the details of a taxpayer’s tax return (i.e. a tax audit).
By when must HMRC give notice of the intention to conduct a compliance check?
By 12 months after the actual filing date, if the return is filed on time, or
the quarter day following the 12 month anniversary of the actual filing date if the
return is filed late.
The quarter days are 31 January, 30 April, 31 July and 31 October.
What is an HMRC determination?
HMRC’s estimate of the tax due from a taxpayer who has not filed a return.
What is time limit for HMRC to make a determination regarding a taxpayer’s tax liability?
Within three years of the statutory filing date.
What is a discovery assessment?
A discovery assessment is a means for HMRC to recover extra tax where it discovers a loss of tax even if the normal time period in which it could open a compliance check has passed.
What is the time limit for HMRC to make a discovery assessment?
The time limits for raising a discovery assessment are:
- 4 years from the end of the relevant period if there has been no careless or
deliberate behaviour - 6 years from the end of the relevant period for careless behaviour
- 20 years from the end of the relevant period if due to deliberate behaviour.
Under what circumstances can HMRC directly recover tax from a taxpayer’s bank account?
The amount owed must be at least £1000.
The taxpayer must be left with at least £5000 in total in all of their accounts.
The taxpayer must have time to raise an objection.
HMRC must be satisfied that the taxpayer is aware that the sum is due.
