It is very possible that the decision in Philip Boyle v HMRC will be used to issue a Follower Notice for cases that have not been registered under DOTAS and this will tell you to commence ‘corrective action’ to resolve your ‘dispute’ with HMRC. There is no right of appeal but representations can be made in certain circumstances. There are new tax geared penalties for non-compliance.
These are some of the measures you should be taking already:
- Reviewing your finances with a view to negotiating a time to pay arrangement
- Preparing a schedule of monthly incomings and outgoings
- Preparing a list of assets at current market value and your liabilities
- Preparing a list of your dependents and any other relevant information such as contingent liabilities
- Consider raising a lump sum for a payment on account
- Progress any loan applications for funds
- Consider the realisation of assets and availability of savings
- Consider HMRC Certificates of Tax Deposit to reduce accruing interest http://www.hmrc.gov.uk/payinghmrc/cert-tax-deposit.htm
Article written by Michael J Perry FCA, Castleham Taxation Services Limited.