Hi there unfortunately it is not possible in a forum such as this to give a definitive as firstly we cannot review the paperwork
please come online so that we can communicate and take this thru
however it is unfortunately perfectly in order for HMRC to issue an enquiry notice for 2009-10 at this time (i.e. before 31-01-2012)
The question is going to be whether what was done was correct or if you received incorrect advice
Clearly if you took advice and followed that advice to the letter then if you were advised incorrectly your adviser would bear some responsibility for any damage or costs that were incurred DUE TO THEIR/HIS/Her NEGLIGENCE
So what is likely to happen?
well when you have not replied by end of February HMRC would be liable to formalise their request so that if you failed to comply (assuming their requests were reasonable) you would become liable to penalties
In UK there is nothing to stop anybody departing our UK shores without paying their proper dues however can I just say that where there are assets remaining in the uK it is a dangerous game to play
I have actually in the past have had clients who have come to me because HMRC were chasing them for tax and had tracked them down to Australia
Clearly if you refuse to comply with their requests (assuming again that they are reasonable requests made in proper time) then HMRC may well think that if things are not correct you knew this and decided not to cooperate
If I was in your position I would urgently contact the person/people etc who advised you in relation to the matters and advise them that HMRC have raised an enquiry into the matter and ask them to confirm that everything was properly executed and that there are no additional taxes/duties etc payable by you under any circumstances
If appropriate they may well in fact decide to deal with the matter on your behalf to ensure that there are no technical slip ups that you were not aware of. Equally armed with their response you can then decide to either fully comply with HMRC right away - also forwarding the response from the advisers - or to initially put the advisers on notice that if they have advised incorrectly then you will be considering seeking recovery/compensation or damages from them for any neglgigence in their advice
I am afraid that I do not have a crystal ball so cannot say what would happen as regards XXXXX XXXXX being put on hold etc but is this really a line you want to go down and having to lose sleep over it in times ahead when you are starting anew down under.
Yes clearly HMRC could (if they could establish an unappealable debt ) seek recovery from you from any assets left here in the UK
If you had been going to any EU country then there are recipricol arrangements where one country's tax department will collect debts in relation to another EU member and although this does not often happen it is feasible that HMRC could engage an agent in Oz to seek recovery from you after you are out there as long as they can serve the appropriate debt documents
Ok you have not come online to enter into the chat so I have converted it to Q&A. If there are any issues arising from my answer please get back to me and I will answer them when I am next on the forum.
Firstly considering the "out of the country" plea I am afraid that it will not wash IF (and of course it is a BIG IF) HMRC trace you and you have no assets in the UK. I am afraid that without a crystal ball I cannot say if they would pursue. EU debts are pursued for less than £10,000 but of course it is easier to get that sort of debt within the EU. All I can say is that it is feasible that they could seek to recover the debt IF it existed. Do we know if there will be a debt?
Of course if you had an asset left in the UK then of course any established debt could be attached to that asset or you could be threatened with legal action against your UK asset/property.
I might be tempted to answer them with details of the person(s) involved and say that all transactions were undertaken based on their advice and you suggest that HMRC contact them as you have so far been unable to get a response yourself.
I am afraid that I am not an expert in Pension funds but my unresearched gut feeling would be that if you received benefits from a pension fund by means of arrangements whereby they would be taxable in the UK if your realised them before the pension conditions were satisfied HMRC would be looking to tax them if you received them by a circuitous route and arrangements while you were in and resident in the UK.
As regards XXXXX XXXXX to the helpline are you saying that somebody said don't return it or you will pay tax on it and you decided to omit it knowing that tax was due on it? Do you have a transcript of such advice and the name, date and time of the call?
As regards XXXXX XXXXX I don't imagine it would be very difficult to establish who you had the pension with if they know that there was a transfer. Of course if you adopted what was a marketed avoidance scheme then there would have been a requirement for the scheme providers (if they were resident in the UK) to advise HMRC of what had taken place and by whom. Whether of course they would cooperate with HMRC in dealing with the matter further is another question.
It could be that the information available to HMRC was what inspired them to send you a tax return to complete to see if you would return the income as taxable.
Watch about your stance "if they have nothing to go on" - clearly if they know that there has been a transfer and you have omitted it from your tax return they could make what is termed a jeopardy assessment (if they think that there is a chance you are going to do a runner - your response that transfer was made in anticipation of emigration) and assess what they consider is the correct tax liability. So you see that you could get into a worse situation if they didn't know the amount and guessed /estimated that it was more than the £50K that came to you.
Presumably you could "assist" HMRC by pointing them to the website of the people that gave you the guidance and transactions (although they may already know).
I can only say it is possible as I had a couple of clients that came to me for help after they had been in Oz a couple of years and HMRC were making matters difficult having tracked them down and raised assessments on them. It depends if you are brazen enough to think that you could get off without paying your dues.
I assume that you are talking about your form P85 being filed to claim back any taxes and to establish your intention to emigrate permanently or indefinitely from the UK. I could not recommend any such action but of course there is no taxes clearance needed to leave the UK - why not I ask myself?
You might also look at the following site to see if potentially your transfer would be ok http://www.qrops-pension-transfer.co.uk/qrops-who-qualifies although remember there is nothing better then a suitably qualified tax adviser reviewing all paperwork and documents and facts. Unfortunately that cannot take place on a forum such as this which can only provide generic observations based on the information provided.
As you will see the Q&A on the website highlighted suggests that it could still be ok if you were leaving the UK within 12 months..... potentially you could fall foul of this then given that you presumably got your transfer in 2009 or 2010?
Ever since 2006, the reporting QROPS rules have required QROPS providers to notify HMRC when the first benefit payments are paid to the member, but only if the member is resident or recently resident (5 years or less) in the UK. So clearly HMRC may well have been advised of the details of the benefits transferred.
No sorry don't mean to add to your stress but if you file a P85 in April (i.e. you are leaving in April it is unlikely that you will get a lot back as each tax year is separate and one would start on 6th April so that at the most all you might get back would be April's tax if that was any.
Don't worry about the police it is a civil matter not criminal!!!
You could end up with the 40% recovery tax plus the 15% extraction levy = 55% but then you could also have interest to pay on the tax unpaid. Unlikely to get a penalty in addition as clearly unless you knew (or suspected) that the information being provided was incorrect you would be unlikely to be negligent to merit a negligence penalty. Negligence penalties are normally tax geared at FROM 100% of the tax downwards depending on how HMRC can suggest your actions were negligent, careless or intentional and can either merit total deferral (if you can show that you took reasonable care) or nil through to normally 20%-30% in your type of case where there was negligence.#
Unfortunately I feel like the prophet of doom.
If you leave in March the most that you would get back (assuming that you were an employee getting paid monthly and having tax deducted in each month and also assuming that the last pay you got was for February ) would be 4 weeks/1month of allowances that had not been used (say £7475 the personal allowance for the year divided by 12) say £623 @ 20% =£124.60 if basic rate taxpayer and £623 @ 40% if higher rate taxpayer.
Interest rate is about 3%
Deferral means they sort of put you on "probation" and if you don't do anything wrong for a couple of years they don't charge the penalty
I don't suppose you have a recording of that conversation -
Forgot to mention - you can't get blood out of a stone so if you/adviser have to negotiate terms for repaying the money - assuming that you haven't saved it or have the ability to get a loan - then you would also have to pay further interest for any terms
I cannot advise you to not provide HMRC with any information that is available to you but you could say that you do not have any documents and that the whole matter was done on the advice of and in the exact manner that you were advised to do it by the specialists --- and give name of company etc with website if held. You could suggest that HMRC seeks the information and documents from them as you have tried to get the relevant documents without success and that provision of the necessary documents is not within your power or possession.
Mind you they are liable to come back and say that you can provide the information as opposed to documents BUT you never know
You said that you had been advised that they were checking a tax return therefore there is an enquiry going on.
I cannot advise you to do inappropriate things like sending letter back as gone away or giving false information that property sold if it has not been. HMRC would potentially check with the Post Office about new address etc.
I would also suggest that the time has come for you to press the accept button. I have no problems in answering any issues arising directly from my answer but I think that very soon you might be gone from here as well. Of course I know where you are going. LOL.