An interesting report in the Guardian newspaper regarding the by now infamous phone hacking scandal.
It emerges that police officers who allegedly took illegal payments from newspapers and private investigators could come under the HMRC microscope.
According to the Guardian HMRC plan to scrutinise the personal tax records of suspected officers to check if payments have been fully disclosed.
Lifestyle
I find this a little far fetched myself, given that you would imagine most of these under the table transactions would have been paid in cash. Of course if the payments were substantial and then invested in lifestyle assets such as cars, houses then that would change things somewhat. Clearly then there may be a means issue from HMRC’s perspective.
It may surprise many that under the tax legislation all payments (illegal or otherwise) should be disclosed to HMRC.
A link to the full Guardian article can be found here http://www.guardian.co.uk/uk/2011/aug/05/hacking-police-fees-investigated-tax
Comment
It is a grave mistake to think that non disclosed cash payments will slip the HMRC net, particularly if there is a lifetyle issue.
The departments access to third party information and interrogation of intelligence received has improved markedly in recent years. Sophisticated data matching technology now means that those who deliberately evade tax can be much more easily identified.
HMRC can prosecute in serious cases. Hefty fines at the very least will be levied if HMRC approach you using their formal powers.
This can be avoided if a taxpayer comes forward voluntarily, disclosing the evasion in full.
You should always consider appointing a tax investigation specialist before engaing in any compliance contact with HMRC, voluntarily or otherwise.
Proactive action with the support of a dedicated adviser could save you thousands of pounds and endless stress and heart ache.
Contact
You can reach Admiral Tax on telephone number 0845 519 2206. Alternatively, if you prefer, you can email the office direct at info@admiraltax.co.uk
