HMRC Wants Your Bank Statements

HMRC Wants Your Bank Statements.

Under new powers in the Budget 2014 and the subsequent Finance Act 2014, HMRC has new powers to force you to pay tax early even in disputed cases and then both parties argue the case later on.

As part of this, reports have circulated the web over the weekend suggesting that HMRC will shortly start to request copies of peoples bank statements.

This, it is rumoured, will allow them to work out how much they can take directly from your bank account without causing cash flow problems or financial hardship.

Comment

Tax is the law. HMRC are there to enforce the law, there is little negotiation on this point. As we say to people, if tax is due it should be paid. There can be no dispute. The difficulty arises where there are ‘grey areas’ of tax law and HMRC will not offer a judgement until the facts are presented. All too often, we refer to HMRC for guidance when dealing with a client’s tax affairs and are told they can offer no opinion but want the facts. They say they are not tax advisers. This, whilst we and many tax advisers do our best, can still lead to uncertainty.

The tax system in the UK is loaded against those that can afford to pay do pay and those that cannot, or refuse to work, contribute little.

Provided you are clear, fair and not misleading in your tax dealings, and make the correct disclosures when you should, you should not have any problems with tax.