What is Code of Practice 11?
At KinsellaTax we know that a self-assessment investigation into your income tax returns can be worrying and can put a toll on your health and personal relationships.
That is why we are here. We will take the stress and strain away from an investigation, allowing you to get on with what you do best; running your own life.
An investigation into your returns is usually carried out under Code of Practice 11 procedures. However, if an investigation into your self-assessment return is carried out under Code of Practice 9 then the taxman suspects you of serious fraud.
Code of Practice 11 deals with investigations carried out by Local Compliance Offices into income tax returns.
They may be full or aspect enquiries.
A full COP 11 self-assessment enquiry is as it sounds; a real dig into every point in the return.
HMRC Aspect Enquiry
‘Aspect enquiries‘ are used when only three or four points are raised in the return.
Care must be taken in dealing with an aspect enquiry so that it doesn’t turn into a full-on investigation.
HMRC can look back into the previous 6 years’ returns. If they suspect serious fraud they may access the previous 20 years under Taxes Management Act 1970 S. 36.
Dealing with these investigations is our speciality. We always fight tooth and nail to ensure all of our clients get a fair settlement and fair penalties.
All self-assessment enquiries will be dealt with by us through our offices.
If your returns are under investigation by HMRC you should always seek advice from a specialist.
We are here for you 24 hours a day so why don’t you give our team a call on 0800 471 4546.
Aspect enquiries are used when only three or four points are raised in the tax return. It can turn into a Full Enquiry at any time so care must be taken in dealing with it in order that it doesn’t turn into a full investigation.
If HMRC is querying your income tax returns then KinsellaTax can help you settle the enquiry.
Why put yourself through the stress of a Code of Practice 11 investigation on your own?
Call KinsellaTax NOW on 0800 471 4546. We will take away the anxiety and deal with your Code of Practice 11 enquiry directly with HMRC.
HMRC Random Return Checks
HMRC, on occasions, select returns at random to run checks to see if anything is wrong which would not be apparent at first glance.
They can assess the last 6 years from the tax year but in some extreme cases, they may access the previous 20 years under Taxes Management Act 1970 S. 36.
TMA 1970 S. 36 (1) reads:-
“An assessment on any person (in this section referred to as ‘the person in default’) for the purpose of making good to the Crown a loss of income tax or capital gains tax attributable to his fraudulent or negligent conduct or the fraudulent or negligent conduct of a person acting on his behalf may be made at any time not later than 20 years after the 31st January next following the year of assessment to which it relates.”
KinsellaTax has a proven track record in settling Code of Practice 11 and enquiries with the smallest possible aggravation to you.
Revised Tax Liabilities
If nothing is found to be wrong then HM Revenue and Customs will close the enquiry, but if something is found to be incorrect they will inform you of your revised tax liabilities.
HMRC, formally the Inland Revenue may seek penalties for incorrect returns. When deciding upon a suitable HMRC penalty they will take into consideration the extent to which you disclosed information and the seriousness of your errors or omissions on your return.
A 100% tax penalty of the liability can be charged but reductions can be claimed, dependent on 3 factors:
- Disclosure – Reduction of up to 20%
- Co-Operation – Reduction of up to 40%
- Seriousness – Reduction of up to 40%.
HMRC take into account what you did, how you did it, how long it went on and the money involved.
Remember, the less serious the offence, the bigger the reduction in the penalty.
HM Revenue and Customs do not generally prosecute for the evasion. However, once you are under a Code of Practice 11 and try to conceal or produce dodgy documents, HMRC will prosecute for the offence of ‘deceit’ and not the tax offence.
Many people who think they are under a COP 11 investigation, even where HMRC have indicated there will be no prosecution for the tax offence, still, take the risk of being prosecuted for the offence of deceit.
HMRC recommend that you appoint a tax advisor to guide you through your enquiry.
Get expert advice before thinking of contacting HMRC or going to see them.
For expert help and advice with your COP 11 enquiry contact KinsellaTax without delay on 0800 471 4546.