Action you can take if you receive a Regulation 80 and/or Regulation 8 notice (“Reg Notice”) demanding payment of tax
We would advise you to do the following:
- Notify us at [email protected] that you have received a Reg Notice
- Please provide a copy of the letter and notice for our records
- This will allow us to understand HMRC’s activity and be prepared for conversations we are having on a general basis for each tax year
- You need to appeal the demand for tax within 30 days of letter’s date:
- We can provide you with an outline template to send to HMRC, you will need to make specific points in regard to your position
- We can provide a list of advisers who are able to support you in filing an appeal
- The Appeal should put the demand for taxes ‘on-hold’ while HMRC further investigate your individual circumstances:
- All notices are issued on a ‘best judgement’ basis and have not taken account of any individual conditions. By way of example of ‘issues’ we have seen:
- People who were not clients of TAAG in the tax year have been targeted;
- Clients have fully paid PAYE tax on their earnings in the year and have still received a demand for further tax;
- Clients who were subject to the Off-Payroll Worker regulations introduced to the public sector in April 2017 have been incorrectly included;
- HMRC are mixing your financial years and tax years incorrectly and their assessments are therefore highly likely to have over-estimated any tax under the legislative conditions.
- Clients who do not provide personal service have been included. For instance, clients who provide a service to their clients and do not charge by the hour should not even be assessed under the legislation.
- HMRC will not have taken account of your individual circumstances:
- What accounting software did you use?
- How did you decide your salary level and payment frequency including any changes made by you during the year or pension contributions made
- How did you decide how much and when to take dividends
- Do you, or did you have a director’s loan at any point during the year
- Have you paid your taxes on time
- Have all your statutory filings been made on time
- How many shareholders, directors and employees you have
- All notices are issued on a ‘best judgement’ basis and have not taken account of any individual conditions. By way of example of ‘issues’ we have seen:
- The Reg Notice does not take account of any corporation tax paid or personal tax paid (on dividends):
- We recommend that you file a conditional reclaim of both corporation and personal tax paid as this should be offset against the amount being demanded by HMRC in the Reg Notice.
- We can provide you with an outline template to send to HMRC, you will need to include specific facts in regard to your position
- We can provide a list of advisers who are able to support you in filing the conditional reclaim
- You can ask us to prepare and file the reclaim on your behalf
Disclaimer
Although we attempt to ensure that the Information contained in this publication is accurate and up-to-date at the date of publication it may not be comprehensive, we accept no liability for the results of any action taken on the basis of the information they contain and any implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement and accuracy are excluded to the extent that they may be excluded as a matter of law.
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