Where you are considered to be tax resident and your domicile can have a dramatic effect on the tax that you pay in the UK. Complex legislation combined with strict requirements to evidence your physical location can make enquiries into tax residence and domicile a stressful and overwhelming experience.
An investigation that is opened into the tax residence of an individual or company can have serious consequences. HMRC have the ability to severely penalise those who do not follow the statutory requirements and make errors when dealing with "offshore" tax issues. By being able to charge a penalty of up to 200% of any additional tax due as a result of such "offshore" errors, HMRC are showing how serious they take non-compliance.
As a result, an individual or company that is subject to this type of investigation can expect an intrusive and often burdensome approach as opposed to a relatively simple compliance check. If you are subject to such an investigation you will be required to defend yourself against any suspicions that HMRC have that you have not been truthful about your physical whereabouts.
Due to the potential financial repercussions of such enquiries, we at The Tax Faculty recommend that you contact us before you respond HMRC's opening contact so that our expert HMRC-handling specialists can provide you with the best possible advice on how you should proceed.
Our experts have many years of experience in both conducting such investigations for HMRC as senior tax inspectors and also in defending clients from such investigations. Indeed, our advisors have represented clients at some of the largest and most well-publicised residence enquiries in recent times. By discussing your circumstances in a non-judgemental atmosphere with our specialists, we can give you detailed advice throughout the process.
Even if you do not eventually use The Tax Faculty to represent you, please do seek advice at an early stage. Whether you are an individual or company who has an enquiry from HMRC, or you are a private practice whose client has received a letter from HMRC notifying them of such an enquiry, please do not ignore the letter or attempt to respond without first seeking advice from professionals with the relevant experience.
We also offer our services to those who already have an existing residence enquiry. Our experts can assist and give a new perspective on existing investigations, providing a pathway to navigate the investigation to a conclusion.
In addition to dealing directly with individual client investigations, our specialists have a proven track record of assisting independent practices in dealing with enquiries into their clients.
Our experts number industry award-winners for the way in which they handle HMRC enquiries and investigations, making The Tax Faculty the best place for pragmatic advice. All initial consultations are free of charge as we know how confusing and complex such investigations can be, therefore we want to be sure that we are best placed to assist before you commit to our services.
Have you or one of your clients received correspondence from HMRC concerning tax residence or domicile? Before you respond to the letter, please contact us as soon as possible so that we can make sure that you take the necessary steps to ensure that any response is correct, complete and most importantly does not prejudice the future of any resulting investigations.
HMRC have statutory tests that they conduct in order to deal with these enquiries, so it is very important that you take expert advice as soon as possible.