When HMRC issues a notice that it is checking a return, the opening letter will invariably request information and documents. The opening letter under TMA 1970, ss 9A, 12AC (for individuals and trustees, and partnerships respectively) or FA 1998, Sch 18, Pt IV, para 24 (for companies) is sent to the taxpayer or the director of the company, with a copy to the agent if the taxpayer or the company is represented. These letters will often be different in tone and content.
The opening letter to the agent will usually encourage an early phone call to discuss the check and enclose an information sheet asking about computer-based records. The opening letter to the taxpayer will not mention any of this but will explain what happens when the check has been completed. The format of the letter to the agent is typically a notification of the check followed by details of why the check is being made (see below 鈥� note that these are both in
Payroll record keepingUnder SI 2003/2682, reg 97, 鈥�...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...鈥�. Reasons for keeping the records include:鈥eing able to calculate tax and
VAT registration 鈥� artificial separation of business activities (disaggregation)This guidance note should be read in conjunction with the VAT registration 鈥� compulsory guidance note and is relevant to persons established or resident in the UK. Persons that are not established or resident in the UK
Withholding taxIntroductionUK tax must be withheld on UK payments including:鈥nterest鈥oyalties鈥ental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were