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:

1. 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
2. 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
3. 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
4. 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