Compliance Centres deal with simple, one aspect, enquiries into tax returns. Their aim is to deal with simple errors; and relatively small discrepancies between the information they have (e.g. from banks or letting agents) and the figures on the Tax Return.
They are part of Her Majesty's Revenue and Customs "Local Compliance" branch. Compliance Centres currently employ around 550 investigators. They handle work drawn from across the UK covering a wide range of duties including Income Tax, Pay As You Earn (PAYE), Value Added Tax (VAT) and National Insurance contributions (NICs).
Generally, their work is additional to and/or supports (rather than replaces) activity carried out in HMRC’s Local Compliance network. The Centres aim to handle high volumes of cases quickly by telephone and/or letter. They deal with focused, single issue, non-complex intervention work based on third party information that they believe indicates potential omissions from tax returns.
Third party information is received by the taxman from a wide variety of sources. The information is compared to the details disclosed on the taxpayer’s return. Where it seems that income has been omitted or understated the case is subject to a formal Compliance Check intervention.
Typical Compliance Centre cases would include:
- Buy to let rental income;
- Capital gains on a rental property disposal;
- Foreign pensions;
- Bank interest.
Generally an enquiry by a Compliance Centre is the least worrying type of “intervention” by the taxman. You will usually be able to deal with the matter very quickly over the telephone. However, if you have wider worries than HMRC are currently asking you about, you may need specialist advice. If you do not disclose all tax irregularities to the Compliance Centre and this is later discovered; serious consequence could follow.
Lynam Tax Enquiry Specialists have the training, knowledge, skills and deep experience to manage your Compliance Centre Tax Enquiry. We can help to reduce the stress and get the optimum solution for you.
To find out how we can help you and for a free, discreet, no obligation discussion call Paul Lynam today on: 0845 643 9997.
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