Greater Yield from Residence and Domicile Tax Investigations

In the last tax HMRC’s yield from investigations into residence and domicile issues went up 27% from the previous year to £154 million, according to a report by Adam Palin in the Financial Times last week.

Many of these tax enquiries are looking at the affairs of so-called “inbounds”, that is people who have recently arrived in the UK, often on short-term or dual contracts whilst working for large multinationals, frequently in the financial services sector.   The taxman attributed the extra yield (i.e. of tax, interest and penalties) to “effective investigation of residence, and domicile status of the individuals seconded to the UK.”

Despite new guidelines from the tax authority in its booklet HMRC6, a complete overhaul of the rules relating to domicile from 2008 onwards, and the introduction of the Statutory Residence Test for the tax year 2014/15 onwards, the issues relating to non-doms and the issues surrounding UK tax residence and non-residence remain complex and confusing: to the extent that not only the typical layman, but even the majority of accountants and tax advisers who do not do not specialise in this area, frequently find them quite baffling.  It is not surprising therefore that many mistakes are made, and that the tax investigators find this a lucrative hunting ground.

Lynam Tax enquiry experts have helped many non-domiciled individuals save large sums by careful analysis of their affairs and the correct application of complex legal principles: which a large number of tax inspectors seem to misunderstand.  Also, dealing with a Tax Residence enquiry or a domicile or remittance dispute requires specialist knowledge, deep experience and a proven methodology in getting investigations and disputes resolved.

If you need more information about this complex issue then phone today for a free, confidential, no obligation discussion.  Call:

Paul Lynam : 0845 643 9997  or

Andrew Nutbrown : 0771 877 8710