As a result we’re increasingly coming across individuals and businesses who due to a change in circumstances have decided to consider settling past tax planning arrangements.
They could be planning to sell their business, retiring or pursuing different commercial interests. We’re encouraging accountants and other business advisers to make sure that their clients know that HMRC’s approach to the settlement of tax planning arrangements is continually evolving.
Many clients discussing the possibility of settling with HMRC are finding their methods inconsistent and confusing.
It’s worth noting that HMRC have had their confidence boosted by a number of ‘wins’ against film schemes and other tax planning arrangements. While they don’t tell the whole story HMRC see these as significant victories.
As a result HMRC is continuing its efforts to encourage taxpayers to enter into settlement arrangements. We are supporting a number of businesses that have made the sometimes difficult decision to ‘settle’ in advance of litigation.
If you’re an accountant with clients or someone who finds yourself in this situation we strongly advise that you talk to us before approaching HMRC to resolve this matter.
In our experience the calculations prepared by HMRC are unlikely to be the most advantageous final settlement figure, it’s well worth getting them checked.
If you’d like to have an initial conversation about settling tax planning do get in touch with us today.
You can read a case study about how we settled an EBT for a client here.
