What is Managing Deliberate Defaulters?
HM Revenue & Customs (HMRC) instigated the Managing Deliberate Defaulters programme in February 2011 to tackle tax evasion by monitoring taxpayers after an investigation.
When an investigation has been concluded, if it is found that an individual has to pay a penalty due to any deliberate understatement of tax for years after 6 April 2009, the taxpayer will be put into the programme for Managing Deliberate Defaulters.
There is also an automatic entry into the programme where individuals have been the subject of a Code of Practice 9 investigation, this is irrespective of whether the individual has to pay a penalty due to a deliberate understatement of tax.
What does it mean?
Once in the programme, individuals will be monitored over a period of between 2 to 5 years. The extent of HMRC’s checks will depend upon the seriousness of the previous tax evasion and can include:
- requiring the provision of additional information with tax returns
- conducting unannounced visits to the place of business of the defaulter to carry out inspections on books and records
HMRC may decide to launch a criminal investigation if a defaulter continues to evade tax whilst in the programme.
How Haines Watts can help
Haines Watts can advise and assist you with avoiding the Managing Deliberate Defaulters programme by making a full disclosure to HMRC and keeping you fully informed throughout the process.
Haines Watts have assisted numerous taxpayers under investigation will ensure all matters are disclosed correctly and will ensure fair treatment by HMRC. We will also negotiate robustly with HMRC to conclude matters on a taxpayer’s behalf, at minimum cost and as expeditiously as possible.
If you wish to discuss this or any other matter with a member of the team, please contact us.