#HMRC joint and several liability

[lexlawuk]

Case Study Success: Notices of Requirement Withdrawn by HMRC

Our expert tax disputes team recently secured a rapid and favourable outcome for a client facing urgent HMRC enforcement action. The case involved security notices issued in respect of Pay As You Earn (PAYE), National Insurance Contributions (NICs), and Value Added Tax (VAT), putting the client’s business operations at immediate risk. Thanks to our in-depth understanding of HMRC powers and fast,…

[georgeshutcheson]

What Is HMRC Form 17?

New Post has been published on https://www.fastaccountant.co.uk/what-is-hmrc-form-17/

What Is HMRC Form 17?

Have you ever wondered what HMRC Form 17 is and how it can benefit you? Look no further! This article is here to shed some light on this important document. It is a form that allows married couples or civil partners in the UK to declare how they want to share their income from jointly owned property for tax purposes. By filling out this form, you can potentially optimize your tax arrangements and save money. Let’s explore the ins and outs of HMRC Form 17 and discover its advantages in more detail.

Overview of HMRC Form 17

Definition of HMRC Form 17

It is a tax form used in the United Kingdom by individuals who jointly own rental properties or other assets. It allows for the allocation of income and expenses between the co-owners, ensuring that each owner’s tax liability is calculated accurately.

Purpose of HMRC Form 17

The main purpose of HMRC Form 17 is to enable co-owners to share the income and expenses from jointly owned properties or assets in a way that reflects their legal ownership rights. By completing this form, family members can benefit from income tax planning, minimize their tax liability, and even transfer ownership of assets in accordance with their financial and estate planning goals.

Who is required to complete this Form

HMRC Form 17 must be completed by individuals who jointly own rental properties and wish to specify sharing agreement of income from the property for income tax purposes. It is particularly relevant for spouses or civil partners who own joint properties, as they often have joint obligations and entitlements for tax purposes. However, it is important to note that each individual must meet the eligibility criteria set by HM Revenue and Customs (HMRC) to use this form. One of which is to present proof that your beneficial interest in the property are not equal, such as through a declaration or deed.

Understanding HMRC Form 17

What information is required on HMRC Form 17

When completing HMRC Form 17, there are several key pieces of information that need to be provided. This includes details about the co-owners, such as their names, addresses, and unique taxpayer reference numbers. Additionally, the form requires information about the jointly owned property or asset, such as its address, the date it was acquired, and the nature of the ownership arrangement.

How to fill out HMRC Form 17

Filling out HMRC Form 17 may seem daunting at first, but it is designed to be user-friendly. The form provides clear instructions for each section, guiding you through the process step by step. It is important to ensure that all information is accurate and complete to avoid any potential issues or penalties. If you are uncertain about any aspect of the form, it is advisable to seek professional assistance or refer to the guidance provided by HMRC.

Where to submit HMRC Form 17

Once completed, HMRC Form 17 should be submitted to HMRC along with any supporting documentation that may be required. The form can be submitted either online through the HMRC website or by mail. It is crucial to keep copies of the completed form and all supporting documents for your records.

Benefits of Using HMRC Form 17

Income tax planning

HMRC Form 17 provides individuals with a valuable tool for income tax planning. By allocating income and expenses between co-owners, it allows for a more strategic distribution of tax liabilities. This can be particularly beneficial for couples or partners who may have different income levels and tax brackets, allowing them to maximize their tax efficiency.

Minimizing tax liability

One of the major benefits of HMRC Form 17 is its ability to help minimize tax liability. By distributing income and expenses in a way that reflects the co-owners’ legal entitlements, individuals can potentially reduce their overall tax burden. This can be especially advantageous when there is a significant disparity in income between the co-owners.

Common FAQs

Can I use HMRC Form 17 for multiple properties?

Yes, HMRC Form 17 can be used for multiple properties as long as they are jointly owned. The form allows for the allocation of income and expenses for each property and co-owner separately. It is important to provide accurate information for each property and review the form before submission to ensure all details are correctly included.

What if I have joint ownership with someone else?

If you have joint ownership with someone else, such as a spouse or civil partner, HMRC Form 17 is the appropriate form to use. It enables you to allocate the income and expenses between co-owners based on their wishes. This can help ensure that the tax liability is accurately calculated for each individual.

Do I need to complete HMRC Form 17 every year?

You generally need to complete HMRC Form 17 each year if you have a joint ownership arrangement and there have been changes in the income or expenses associated with the jointly owned property or asset. It is important to review your circumstances annually to determine whether the form needs to be completed. Keeping proper records and seeking professional advice can help ensure compliance with HMRC requirements.

[taxcare-accountant]

How HMRC Combats Tax Evasion

Tax evasion is a pervasive issue that undermines the integrity of tax systems worldwide, resulting in significant revenue losses for governments. In the United Kingdom, Her Majesty's Revenue and Customs (HMRC) plays a crucial role in combating tax evasion, employing various strategies and techniques to ensure compliance with tax laws.

Introduction

Tax evasion is a serious offense that occurs when individuals or businesses intentionally misrepresent their financial information to reduce their tax liability unlawfully. This dishonest practice deprives the government of essential funds needed for public services and infrastructure development. HMRC, the UK's tax authority, is tasked with detecting and preventing tax evasion to safeguard the country's economic stability.

What is Tax Evasion?

Tax evasion encompasses a range of illegal activities aimed at evading tax obligations. This includes underreporting income, overstating deductions, hiding assets offshore, and engaging in fraudulent schemes to avoid paying taxes. The consequences of tax evasion are severe, ranging from financial penalties to criminal prosecution.

Methods of Tax Evasion

Tax evaders employ various methods to conceal their income and assets from tax authorities. These may include operating under the table, using shell companies, engaging in cash transactions, and exploiting legal loopholes. By exploiting weaknesses in the tax system, individuals and businesses seek to evade their fair share of taxes, putting an unfair burden on honest taxpayers.

Role of HMRC

HMRC plays a pivotal role in combating tax evasion through enforcement, education, and collaboration. As the UK's tax authority, HMRC is responsible for collecting taxes and ensuring compliance with tax laws. This involves investigating suspected cases of tax evasion, conducting audits, and prosecuting offenders to deter future misconduct.

Investigative Techniques

HMRC employs a variety of investigative techniques to uncover instances of tax evasion. These may include data matching, forensic accounting, surveillance, and undercover operations. By gathering evidence and analyzing financial transactions, HMRC can identify patterns indicative of tax evasion and take appropriate action.

Legal Actions

When tax evasion is detected, HMRC can take legal action against offenders to recover unpaid taxes and impose penalties. This may involve civil penalties, criminal prosecution, and asset seizure. By holding tax evaders accountable for their actions, HMRC sends a clear message that tax evasion will not be tolerated.

Cooperation with Other Agencies

HMRC works closely with other government agencies, law enforcement bodies, and international organizations to combat tax evasion effectively. This collaboration facilitates information sharing, joint investigations, and coordinated enforcement efforts across jurisdictions. By pooling resources and expertise, HMRC can target sophisticated tax evasion schemes that span multiple countries.

International Efforts

Tax evasion is a global issue that requires international cooperation to address effectively. HMRC participates in various international initiatives and agreements aimed at combating tax evasion and promoting tax transparency. This includes the exchange of financial information between countries, the implementation of anti-money laundering measures, and the prosecution of offshore tax evaders.

Technology and Data Analysis

Advancements in technology have enhanced HMRC's ability to detect and prevent tax evasion. HMRC utilizes sophisticated data analysis tools and artificial intelligence algorithms to identify potential tax compliance risks and target high-risk individuals and businesses. By harnessing the power of data, HMRC can prioritize its enforcement efforts and maximize its impact.

Public Awareness Campaigns

In addition to enforcement measures, HMRC invests in public awareness campaigns to educate taxpayers about their obligations and the consequences of tax evasion. By promoting compliance and ethical behavior, these campaigns help deter tax evasion and foster a culture of tax honesty. Educating the public about the importance of paying taxes ensures widespread support for HMRC's enforcement efforts.

Challenges Faced

Despite its efforts, HMRC faces several challenges in combating tax evasion, including limited resources, evolving tactics employed by tax evaders, and the complexity of international tax laws. Additionally, the proliferation of digital currencies and offshore tax havens presents new challenges for tax authorities seeking to trace and recover hidden assets.

Success Stories

Despite these challenges, HMRC has achieved notable successes in combating tax evasion. Through targeted enforcement actions and strategic partnerships, HMRC has recovered billions of pounds in unpaid taxes and secured convictions against high-profile tax evaders. These successes demonstrate HMRC's commitment to upholding the integrity of the UK's tax system.

Future Strategies

Looking ahead, HMRC is committed to adopting innovative strategies to stay ahead of tax evaders and protect public finances. This includes investing in technology, enhancing international cooperation, and strengthening penalties for tax evasion. By remaining vigilant and adaptable, HMRC aims to maintain public trust in the fairness and integrity of the tax system.

Conclusion

In conclusion, tax evasion poses a significant threat to the UK's economy and society, depriving the government of vital revenue needed for public services. HMRC plays a crucial role in combating tax evasion through enforcement, education, and collaboration. By leveraging technology, international cooperation, and public awareness campaigns, HMRC can detect and deter tax evasion effectively, ensuring a level playing field for all taxpayers.

[un-enfant-immature]

UK has ‘red flagged’ 4,600 sellers for tax evasion on marketplaces like Amazon in 2 years

Sites like Amazon and eBay have made it very compelling for consumers to buy online rather than in stores, in part because prices are very competitive and in many cases cheaper than what buyers might find in traditional retailers. But in the UK, it turns out that some of those low prices are in part due to sellers dodging taxes, so now the government is cracking down.

The UK’s tax authority has ‘red-flagged’ 4,600 online merchants, from a total of 7,000 investigations, in the last two years that have been evading sales taxes on goods sold in the UK on major marketplace sites like Amazon and eBay. Many of those online stores have been shut down and deleted as a result, while those now selling to UK buyers legitimately are giving the UK’s tax coffers a £205 million ($255 million) boost.

The numbers are the latest milestones in a long-term, ongoing operation by HM Revenue and Customs (HMRC). The authority has been working in conjunction with seven different online marketplaces — Amazon, eBay, Fruugo.com, Wolf & Badger, Etsy, ASOS and Flubit — which last year signed on to cooperate in the investigation to identify merchants evading taxes by providing records of sales and other data obtained by the HMRC itself (we asked and it did not elaborate on what the latter entails).

The HMRC has estimated that between £1 billion and £1.5 billion ($1.3-1.9 billion) in collections were lost in a single year (2017) by companies failing to pay sales taxes on goods, with between £600 million and £900 million of that coming from overseas sellers.

The HMRC defines overseas sellers as a merchant that sells goods “in the UK to UK consumers and don’t have a business establishment in the UK.” Merchants based outside the EU that sell goods to UK consumers and then imports them to the UK are also overseas sellers.

The Joint and Several Liability (JSL) notices — as the red flag notices are officially called — have been around since 2016, part of a wider remit both to identify tax loss and also weed out those who might be tricking the system to the detriment of UK businesses.

“Delivering a fair and level playing field for businesses is a top priority for this government,” said Financial Secretary to the Treasury, Mel Stride MP, in a statement. “These figures show that HMRC, working closely with the major online marketplaces, is making real headway tackling this serious and damaging evasion.”

But the agreements signed earlier this year with marketplaces like Amazon to help identify violating online sellers has given the program a boost: now, if a seller’s account does not get removed after it has been red-flagged, the marketplaces themselves become liable for any future sales taxes that the sellers incur. (It does not appear that they are liable for past taxes, though.)

The HMRC said that another consequence of the operation has been a boost in VAT (value-added tax, or sales tax) registrations by overseas companies. Between 2017 and the end of 2018, there were 58,000 VAT registration applications, compared to only 1,650 between 2015 and 2016.

[fmservers]

UK has ‘red flagged’ 4,600 sellers for tax evasion on marketplaces like Amazon in 2 years

Sites like Amazon and eBay have made it very compelling for consumers to buy online rather than in stores, in part because prices are very competitive and in many cases cheaper than what buyers might find in traditional retailers. But in the UK, it turns out that some of those low prices are in part due to sellers dodging taxes, so now the government is cracking down.

The UK’s tax authority has ‘red-flagged’ 4,600 online merchants, from a total of 7,000 investigations, in the last two years that have been evading sales taxes on goods sold in the UK on major marketplace sites like Amazon and eBay. Many of those online stores have been shut down and deleted as a result, while those now selling to UK buyers legitimately are giving the UK’s tax coffers a £205 million ($255 million) boost.

The numbers are the latest milestones in a long-term, ongoing operation by HM Revenue and Customs (HMRC). The authority has been working in conjunction with seven different online marketplaces — Amazon, eBay, Fruugo.com, Wolf & Badger, Etsy, ASOS and Flubit — which last year signed on to cooperate in the investigation to identify merchants evading taxes by providing records of sales and other data obtained by the HMRC itself (we asked and it did not elaborate on what the latter entails).

The HMRC has estimated that between £1 billion and £1.5 billion ($1.3-1.9 billion) in collections were lost in a single year (2017) by companies failing to pay sales taxes on goods, with between £600 million and £900 million of that coming from overseas sellers.

The HMRC defines overseas sellers as a merchant that sells goods “in the UK to UK consumers and don’t have a business establishment in the UK.” Merchants based outside the EU that sell goods to UK consumers and then imports them to the UK are also overseas sellers.

The Joint and Several Liability (JSL) notices — as the red flag notices are officially called — have been around since 2016, part of a wider remit both to identify tax loss and also weed out those who might be tricking the system to the detriment of UK businesses.

“Delivering a fair and level playing field for businesses is a top priority for this government,” said Financial Secretary to the Treasury, Mel Stride MP, in a statement. “These figures show that HMRC, working closely with the major online marketplaces, is making real headway tackling this serious and damaging evasion.”

But the agreements signed earlier this year with marketplaces like Amazon to help identify violating online sellers has given the program a boost: now, if a seller’s account does not get removed after it has been red-flagged, the marketplaces themselves become liable for any future sales taxes that the sellers incur. (It does not appear that they are liable for past taxes, though.)

The HMRC said that another consequence of the operation has been a boost in VAT (value-added tax, or sales tax) registrations by overseas companies. Between 2017 and the end of 2018, there were 58,000 VAT registration applications, compared to only 1,650 between 2015 and 2016.

Via Ingrid Lunden https://techcrunch.com

[toomanysinks]

UK has ‘red flagged’ 4,600 sellers for tax evasion on marketplaces like Amazon in 2 years

Sites like Amazon and eBay have made it very compelling for consumers to buy online rather than in stores, in part because prices are very competitive and in many cases cheaper than what buyers might find in traditional retailers. But in the UK, it turns out that some of those low prices are in part due to sellers dodging taxes, so now the government is cracking down.

The UK’s tax authority has ‘red-flagged’ 4,600 online merchants, from a total of 7,000 investigations, in the last two years that have been evading sales taxes on goods sold in the UK on major marketplace sites like Amazon and eBay. Many of those online stores have been shut down and deleted as a result, while those now selling to UK buyers legitimately are giving the UK’s tax coffers a £205 million ($255 million) boost.

The numbers are the latest milestones in a long-term, ongoing operation by HM Revenue and Customs (HMRC). The authority has been working in conjunction with seven different online marketplaces — Amazon, eBay, Fruugo.com, Wolf & Badger, Etsy, ASOS and Flubit — which last year signed on to cooperate in the investigation to identify merchants evading taxes by providing records of sales and other data obtained by the HMRC itself (we asked and it did not elaborate on what the latter entails).

The HMRC has estimated that between £1 billion and £1.5 billion ($1.3-1.9 billion) in collections were lost in a single year (2017) by companies failing to pay sales taxes on goods, with between £600 million and £900 million of that coming from overseas sellers.

The HMRC defines overseas sellers as a merchant that sells goods “in the UK to UK consumers and don’t have a business establishment in the UK.” Merchants based outside the EU that sell goods to UK consumers and then imports them to the UK are also overseas sellers.

The Joint and Several Liability (JSL) notices — as the red flag notices are officially called — have been around since 2016, part of a wider remit both to identify tax loss and also weed out those who might be tricking the system to the detriment of UK businesses.

“Delivering a fair and level playing field for businesses is a top priority for this government,” said Financial Secretary to the Treasury, Mel Stride MP, in a statement. “These figures show that HMRC, working closely with the major online marketplaces, is making real headway tackling this serious and damaging evasion.”

But the agreements signed earlier this year with marketplaces like Amazon to help identify violating online sellers has given the program a boost: now, if a seller’s account does not get removed after it has been red-flagged, the marketplaces themselves become liable for any future sales taxes that the sellers incur. (It does not appear that they are liable for past taxes, though.)

The HMRC said that another consequence of the operation has been a boost in VAT (value-added tax, or sales tax) registrations by overseas companies. Between 2017 and the end of 2018, there were 58,000 VAT registration applications, compared to only 1,650 between 2015 and 2016.

source https://techcrunch.com/2019/01/10/uk-has-red-flagged-4600-sellers-for-tax-evasion-on-marketplaces-like-amazon-in-2-years/