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• Strengthening civil deterrents for offshore evaders: HMRC are asking for comments on the options for changing the way they calculate the penalties for offshore evasion and potential safeguards.
• Civil sanctions for enablers of offshore evasion: This consultation sets out the government’s plans to introduce new civil sanctions for enablers of offshore tax evasion. 

S Mahendran (TC4470)

HMRC do not understand the agent/client relationship

Put your client admin into motion

Issue 48 of Agent Update, HMRC’s bi-monthly news roundup for tax advisers, is now available.

Items include confirmation that the Revenue has updated 15 out of its 20 toolkits, with the remaining five to be revamped over the next few months. The toolkits cover the 400 most common errors that HMRC see in returns filed by tax advisers.

The government is to go ahead with its controversial proposal to allow HMRC access to taxpayers’ bank and building society accounts.

The power of direct debt recovery (DRD) will allow the Revenue to take payment of tax and tax credit debts from accounts.

It will have effect from the date of royal assent of the summer Finance Bill 2015, while draft secondary legislation will be published with the bill for consultation.

• It is always worth reminding clients about fraudulent emails claiming to be from HMRC. Warn them that the Revenue never asks for personal information by email or text and suggest they forward suspicious messages.
   

First reactions to the chancellor’s second speech of the year

HMRC will receive an extra three quarters of a million pounds to fund their ongoing fight against tax dodging, the chancellor announced this afternoon.

The move to combat non-compliance and criminal activity was welcomed by the Association of Revenue and Customs (ARC), which represents the taxman’s senior staff members. The union’s president, Tony Wallace, claimed the £750m injection “will yield a significant dividend for the country”.

The first wholly Conservative Budget in almost 19 years sparked largely optimistic reactions from tax experts today, with George Osborne’s plans described as “entirely sensible”, “pleasing”, and akin to the work of one of history’s greatest artists.

“The chancellor resembled Michelangelo as he re-sculpted the UK tax system, taxing dividends, proposing changes to pensions, adding a new tax on banks, cutting corporate tax rates, and restricting interest relief on buy-to-let investments,” said EY’s head of tax policy, Chris Sanger.

How to read tax information and impact notes