Public Notice 160 Enquiry (VAT) - Applies to Sole Trader, Partnerships & Directors

► What is a Public Notice 160 enquiry?

On 1 September 2007 Public notice 160 was introduced, which sets out the procedure for civil evasion penalty enquiries for indirect taxes. It is designed to be used in cases where there is evidence of dishonest conduct.

QUESTIONS

► What do I do when I receive the public notice 160?

HMRC will ask you and your professional adviser, if you have one, to attend a meeting.

HMRC will tell you that the enquiry is not being conducted with a view to prosecution.

You will have an opportunity to disclose any irregularities or matters in relation to your tax affairs.

► Do I have to cooperate with the enquiry?

It is for you to decide whether or not to co-operate with HMRC enquiries. However if you choose to co-operate and disclose details of your true liability then you can significantly reduce the amount of any penalties due.

The maximum reduction will be 80% and can be reduced as follows:

up to 40% - early and truthful explanation as to why the arrears arose and the true extent of them.
up to 40% - fully embracing and meeting responsibilities under this procedure by, for example, supplying information promptly, disclosure & quantification of irregularities, attending meetings and answering questions.

► How much do I have to pay?

Generally, HMRC will issue a civil evasion penalty assessment. This will be in addition to any tax that may also be due.

► How long will the enquiry take?

HMRC will close an enquiry as soon as they are satisfied that your tax affairs in relation to the matters under investigation are in order or settled.

► What are the HMRC's areas of concern?

HMRC's areas of concern are the areas we specialise in - Click Here.