HMRC also have the power to transfer PAYE and NIC liabilities to the directors should a company become insolvent, so before appointing an Insolvency Practitioner advice should be taken on the options available.
TAX INVESTIGATIONS
HMRC are constantly receiving more information in relation to taxpayers financial affairs both in the UK and Overseas – they recently secured a “cease and desist “ order on the Euro Pacific Bank in Puerto Rico.
Increasingly HMRC are raising VAT enquiries into companies using payroll companies, using the”Kittel” principle that the director knew or should have known the payroll company was involved in tax evasion. As the company will already have paid the payroll company, such a challenge can prove extremely expensive for the company if not tackled in an appropriate manner.
If you receive an enquiry notice, accelerated payment notice or wish to explore settlement of tax with HMRC, Liz Coleman has the experience to advise you on how best to proceed and to reach the most palatable settlement with HMRC including the negotiation of time to pay if required.
Criminal Proceedings
It should not be forgotten that in the most serious cases HMRC may consider instigating criminal proceedings.
A criminal enquiry is extremely disruptive and so any businesses who have made incorrect claims would be best advised to seek advice with a view to rectifying the position on a civil basis.
If criminal proceedings are started, it would be expected that the entire operation of the business and the director/proprietor’s personal affairs would be investigated.
Should a criminal conviction be secured by HMRC, there is then the issue of Proceeds of Crime proceedings in which orders can be made to repay large sums of money – HMRC’s calculation of benefit of the crime. If payment is not made when assets are available, extensions to prison sentences can be imposed.
If you are concerned about the accuracy of a claim or have a disclosure to make in relation to an inaccurate claim, contact us to discuss the options available.
