One of the advantages of a committee composed almost entirely of practicing rural accountants is that sometimes trends can be identified, particularly regarding approaches from HMRC – as set out below:
Our clients have received several ‘nudge’ letters from HMRC in recent times. Firstly, trustees of a trust have been asked why they haven’t reported disposals of property on their personal self-assessment tax returns. HMRC seemingly have been trawling through Land Registry records and not realising in all cases that disposals have already been declared on trust tax returns.
We have had instances of HMRC contacting taxpayers and us as agents about provisional Business Asset Rollover Relief claims that have been made on a Provisional Basis but where the final claim has not yet been made. The letters have emphasised the need to ‘pay the tax due’ over what steps need to be made to make a final claim, and by when!
In a frustrating backward step for technology, we have had numerous instances of HMRC refusing to acknowledge a completed online agent authority. In all cases, the officers have stated that they require a paper 64-8 authority to be completed by the client, which in practice is then subject to HMRCs postal processing times. Not ideal for quick resolutions or for client relationships, where they are being asked to undertake numerous processes in order to authorise agents.
We urge members to be very clear on whether a letter from HMRC represents a ‘nudge’ letter, or the opening of a check or enquiry, before taking appropriate action.
*The views expressed are the author's and not ICAEW's