<html xmlns="http://www.w3.org/1999/xhtml"> <head> <title>TaxConcern - Code of Practice 14 Tax Concern Tax and VAT Investigation Specialists for UK taxpayers</title> <meta name="keywords" content="Tax enquiry, Tax problems, Tax investigations, COP9, COP11, COP14, Tax Advice, AT tribunal, Tax accountants, Tax advisers, Tax concerns" /> <link media="screen" href="styles.css" type="text/css" rel="StyleSheet" /> <script language="JavaScript" type="text/javascript" src="menulink.js"></script> <script language="JavaScript" type="text/javascript"> Image1 = new Image() Image1.src = "images/banner_cop14.png" </script> </head> <body> <div id="menucontainer"> <h1><img alt="Taxconcern header" src="images/banner_cop14.png" usemap="#language" /></h1> <table id="menu"> <tr> <td> <a href="index.htm" >Tax Enquiry</a> </td> <td> <a href="about.htm">About Tax Concern</a> </td> <td> <a href="cop9.htm">Tax Investigation HMRC COP9 2005</a> </td> <td> <a href="cop11.htm">Personal Tax Enquiry HMRC COP11</a> </td> <td> <a href="cop14.htm" style="color: yellow;">Company Tax Enquiry HMRC COP14</a> </td> <td> <a href="pn160.htm">VAT Enquiry HMRC PN160</a> </td> <td> <a href="/student/">Student Tax Refund</a> </td> <td> <a href="findus.htm">Contact Tax Concern</a> </td> </tr> </table> </div> <div id="anylinkmenu2" class="anylinkcss" > <a href="findus.htm">Individual Bankruptcy</a> <a href="findus.htm">Company Winding Up Order</a> </div> <div id="bodycontainer2"> <h2>Code of Practice 14 - Applies to Directors, Company Secretary & Investors</h2> <p><span id="red1">&#9658;</span> <b>What is a Code of Practice 14?</b></p> <p>Code of Practice 14 tells you that HMRC local offices will carry out enquiries into corporation tax self assessments (<a target="_blank" class="popup2" href="cop_letters/cop14.html">CTSA</a>).</p> <p>This Code of Practice promises you a fair treatment under the law and the start of an enquiry process.</p> <p>QUESTIONS</p> <p><span id="red1">&#9658;</span> <b>What is wrong with the CTSA?</b></p> <p>HMRC want companies to pay the right amount of tax, no more, no less. To discourage tax evasion and ensure the whole system is operating fairly, they will select some CTSA for enquiry at <a target="_blank" class="popup2" href="diagram.html">random</a> to check if anything is wrong that may not be apparent on the face of the CTSA.</p> <p><span id="red1">&#9658;</span> <b>Who can help the companies?</b></p> <p>HMRC recommend that the company can choose to be professionally represented, by an accountant or <a target="_blank" class="popup2" href="Taxconcern_Pu.htm" onclick="window.open(this.href, 'popupwindow', 'width=275,height=500,scrollbars,resizable'); return false;"> tax adviser</a>. The company may exercise that right at any time and likewise may change or stop using a professional adviser at any time.</p> <p>The enquiry process involves sending you an opening letter  <a target="_blank" class="popup2" href="cop_letters/cop14.html">sample letter</a></p> <p><span id="red1">&#9658;</span> <b>I am a director and shareholder will I be under enquiry at the same time?</b></p> <p>No. HMRC need to open separate enquiries into directors or shareholders personal tax returns in writing that they intend to start and send them a separate Code of Practice11.</p> <p><span id="red1">&#9658;</span> <b>How long is an enquiry?</b></p> <p>HMRC state that they will end enquiries as soon as possible.</p> <p><span id="red1">&#9658;</span> <b>How far back can they go?</b></p> <p>HMRC can assess the last <a target="_blank" class="popup2" href="Courts_Pu.htm" onclick="window.open(this.href, 'popupwindow', 'width=275,height=500,scrollbars,resizable'); return false;"> 6 years</a> from the enquiry year. In extreme cases they may assess the last <a target="_blank" href="Courts_Pu.htm" class="popup2" onclick="window.open(this.href, 'popupwindow', 'width=275,height=500,scrollbars,resizable'); return false;"> 20 years</a>.</p> <p><span id="red1">&#9658;</span> <b>What are the HMRC s areas of concern?</b></p> <p>HMRC s areas of concern are the areas we specialise in. <a target="_blank" class="popup2" href="skilled_Pu.htm" onclick="window.open(this.href, 'popupwindow', 'width=275,height=500,scrollbars,resizable'); return false;"> Click Here</a>.</p> <p><span id="red1">&#9658;</span> <b>Do the directors, company secretaries, shareholders have to attend meetings?</b></p> <p>The directors and employees of the company are not obliged to come to any meeting stated in the Code of Practice 14.</p> <p><span id="red1">&#9658;</span> <b>How much extra corporation tax to pay?</b></p> <p>If HMRC finds nothing wrong, they will tell you and let you know that their enquiries have finished.</p> <p>If HMRC finds something wrong in your tax return they will suggest changes in the light of all the new information and explain how they have arrived at your revised corporation tax liabilities.</p> <p>Interest is payable whenever amounts are paid late.</p> <p>HMRC can only seek penalties for incorrect tax returns. When calculating any penalty, they will take into account the extent to which you have voluntarily disclosed anything that was wrong and the seriousness of your errors or omissions.</p> <p>Where the enquiry results in additional tax being due for more than one year it is often settled through contract between director(s) and the company. This is called the joint settlement.</p> <p><span id="red1">&#9658;</span> </b>How are penalties worked out?</b></p> <p>The penalty figure will be a percentage of the tax underpaid. In law it could be 100% of that amount. </p> <p>HMRC start with a figure of 100% and reduce it by an amount which depends on three factors: </p> <ul class="black"><li>Disclosure - A reduction of up to 20%. </li></ul> <p>If you make a full disclosure at the time HMRC first open the enquiry, you will get a considerable reduction in the amount of the penalty. </p> <p>If you deny until the last possible moment that anything is wrong, you will get little or no reduction for disclosure. </p> <p>Between these two extremes a wide variety of circumstances is possible. HMRC will consider how much information you gave, how quickly, and how that contributed towards settling the enquiry. </p> <ul class="black"><li>Co-operation - A reduction of up to 40%. </li></ul> <p>If you supply information quickly, attend interviews, answer questions honestly and accurately, give all the relevant facts and pay tax on account when it becomes possible to estimate the amount due, you will then get the maximum reduction for co-operation. </p> <p>If you put off supplying information, give misleading answers to questions, do nothing until we take formal action against you and generally obstruct the progress of the enquiry you will not get any reduction at all. </p> <p>Between these extremes there is a wide range of possible circumstances and we will look at how well you have co-operated with the enquiry. </p> <ul class="black"><li>Seriousness - A reduction of up to 40%.</li></ul> <p>Your actions may amount to a premeditated and well-organised fraud or something much less serious. We will take into account what you did, how you did it, how long it went on and the amounts of money involved. The less serious the offence, the bigger the reduction in the penalty. </p> <p><span id="red1">&#9658;</span> <b>Will I have to pay VAT?</b></p> <p>It depends what amendments are made, generally, if there is undeclared taxable income there is a vat liability. But, if there is undeclared investment income there is no vat due</p> </div> <div id="footer2"> <table> <tr> <td class="footer2" ><a class="footer" href="index.htm">Click here</a> to see partly completed cases taken on where clients were pleased with the settlements</td> </tr> </table> </div> <div id="footer"> <table> <tr> <td ><a href="http://www.outertemple.com/barristers/robert-rhodes-qc.asp"><img src="images/QC1.jpg" /></a></td> <td> <ul id="bottommenu"> <li class="rightborder"><a href="index.htm">Home</a></li> <li class="rightborder"><a href="about.htm">About</a></li> <li class="rightborder"><a href="cop9.htm">Cop9(2005)</a></li> <li class="rightborder"><a href="cop11.htm">Cop11</a></li> <li class="rightborder"><a href="cop14.htm">Cop14</a></li> <li class="rightborder"><a href="pn160.htm">PN160</a></li> <li class="rightborder"><a href="/student/">Student Tax Refund</a></li> <li class="rightborder"><a href="findus.htm">Find Us</a></li> <li ><a href="terms.htm">Terms</a></li> </ul> <ul id="bottommenu"> <li>Copyright ©2008 Taxconcern Ltd. formerly Feng & Co</li> </ul> </td> <td width="10%"><a href="findus.htm"><img src="images/findus1.jpg" /></a></td> </tr> </table> </div> <map id="language" name="language" title="select english or chinese"> <area shape="rect" coords="786, 87, 818, 109" href="cop14.htm" alt="english language" ></area> <area shape="rect" coords="863, 87, 895, 109" href="cop14_chinese.htm" alt="chinese language"></area> <area shape="rect" coords="938, 87, 970, 109" href="playvideo.htm" target="_blank" alt="play video" ></area> </map> </body> </html>