Tax Disclosure Case Studies
Tax Disclosure Case Studies
Overseas Income
Our client had left the UK to work overseas, after several years they returned to the UK, but still undertook assignments overseas. Our client did not report income to HMRC when they re-established tax residency in the UK and they contacted Forte to discuss the options of making a voluntary disclosure to HMRC.
Offshore Income Disclosure
Our tax disclosures team discussed all of the disclosure options that were available to them, and following the initial consultation, it was agreed with our client to make a voluntary approach to HMRC’s specialist offshore co-ordination team.
What did Forte do
- Provided the client with a tailored disclosure plan.
- Conducted a tax residency review.
- Drafted, competed and submitted our client’s disclosure report.
- Calculated all tax liabilities, penalties and interest in relation to the disclosure.
- Negotiated settlement with HMRC.
The Outcome
Our client was guided through the voluntary disclosure process from beginning to end, HMRC agreed with the residency review and the tax years to be disclosed, our calculations of tax and interest were subsequently reviewed and accepted by HMRC.
As a result of making this disclosure our client has been able to bring his UK tax affairs up to date and put in place the correct filing processes going forward.
Online Income Disclosure
Forte were approached by clients who had been trading online for several years. The clients had initially sold their own possessions but over time they began to buy and sell other items for a profit. Over the course of several years our clients were trading at a reasonable level, but had not informed HMRC that they were trading. Worried about receiving a letter from HMRC they called Forte to arrange a no obligation meeting.
e-Trading Income Disclosure
Having discussed the available disclosure options our clients agreed to make a voluntary disclosure of their e-market place business.
What did Forte do
- Provided our client with a tailored disclosure plan.
- Reviewed the amount of years involved, distinguishing between the selling of personal goods and the e-trading.
- Drafted, completed and submitted our client’s disclosure report.
- Calculated all tax liabilities, penalties and interest in relation to the disclosure.
- Negotiated a settlement with HMRC.
The Outcome
Our client was guided through the voluntary disclosure process from beginning to end. HMRC were provided with a clear and detailed review of the trading position, evidenced by all the available documentation and they accepted our disclosure in full.
As a result of making this disclosure our clients have been able to bring their tax affairs up to date and for the first time they have an accurate set of accounts for their e-trading activity which they have used in negotiations with small business lenders with a view to expanding their business.
Client with Swiss Bank Account
Having heard some of the reports that the UK Government was targeting UK taxpayers with offshore assets, our client wanted to make a voluntary disclosure to bring his tax affairs up to date.
Specifically, the client had Swiss bank accounts and following the UK Swiss Tax Cooperation Agreement signed between the two respective Governments, he wanted to ensure he did not fall under investigation and potentially receive large penalties.
Liechtenstein Disclosure Facility (LDF)
We identified that the most suitable solution for the client was the Liechtenstein Disclosure Facility (LDF).
What did Forte do
- Calculated UK tax liabilities in relation to undeclared income on Swiss account.
- Liaised with the Swiss Bank, and advisers in both Switzerland and Liechtenstein.
- Communicated and liaised with HMRC on the client’s behalf to make the disclosure.
The Outcome
Our calculations of tax and interest were reviewed and accepted by HMRC subsequently saving our client over £150,000.
As a result of taking advantage of the LDF the client received reduced penalties, brought his tax position up to date and avoided a criminal prosecution for tax evasion.
Client with Let Property Disclosure
Our client received a letter from HM Revenue & Customs stating that they had information relating to a second property that they owned. Having received this letter and realising they had a disclosure to make, our client approached us through our disclosures website and our Tax Investigations team immediately began working on their behalf.
The Let Property Campaign is available to those people who own and let out residential property and have not previously informed HMRC.
Let Property Campaign (LPC)
Having discussed all aspects of our client’s tax affairs, we identified that the most suitable solution for the client was to use the Let Property Campaign.
What did Forte do
- Guided our client through the complete disclosure process.
- Calculated the correct amount of profit from their rental property.
- Calculated all of the Tax Liabilities.
- Dealt with all of HMRC’s procedural and administrative forms.
The Outcome
Our client’s disclosure was completed and submitted within the prescribed 3 month timescale. HMRC accepted our clients self disclosure of all income and expenditure.
Within 4 months from our initial consultation our client had made a full disclosure to HMRC had it accepted and allowed them to concentrate on growing their rental portfolio.
Client with undeclared Income
Our client had not interacted with HM Revenue & Customs for 20 years, nearing retirement and in the process of handing over his business to his children wanted to make a voluntary disclosure to HM Revenue & Customs.
Approaching our tax disclosures team for assistance, they were provided with the disclosure options that were available to them, and following this initial consultation, it was agreed that our client would make a voluntary approach to HMRC under the Contractual Disclosure Facility (CDF), also known as Code of Practice 9.
Our client wanted to ensure that he made a full disclosure to HMRC but also that he was provided with a disclosure gateway that gave a guarantee on non-prosecution.
Contractual Disclosure Facility (CDF)
We identified that the most appropriate disclosure route to meet these expectations was under the Contractual Disclosure Facility (CDF)
What did Forte do
- Provided our client with a tailored disclosure plan.
- Assisted with the completion of the outline disclosure to HMRC.
- Guided our client through the whole disclosure process including meetings with HMRC.
- Drafted, completed and submitted our client’s disclosure report.
- Calculated all tax liabilities, penalties and interest in relation to the disclosure.
- Negotiated settlement with HMRC.
The Outcome
Our client was guided through the CDF process from beginning to end. HMRC agreed with our method and approach to the full disclosure and the calculations of tax and interest were reviewed and accepted by HMRC.
As a result of using the CDF process our client was able to disclosure their previous non-compliance, settle the calculated liabilities and hand over a tax compliant business to their children.