Sue Holmes, tax director, and Jon Claypole, senior manager, at Deloitte, discuss the latest 'enabling' letters issued by HMRC. This article appeared in the November 2005 issue of Tax Adviser. Most readers will be aware that the Inland Revenue has, over recent years, given greater emphasis to 'enabling' taxpayers to understand and comply with their obligations, including, of course, paying the correct amount of tax at the right time. One of the enabling methods chosen by the Revenue (now HMRC) is to write to selected taxpayers suggesting that they might like to consider specified aspects of their tax affairs in more detail. 'Enabling' initiatives in the form of letters for certain small traders with a turnover below £15,000, certain contractors in the construction industry, and certain small businesses with a turnover less than £150,000 have been sent. These 'enabling' letters have concentrated on helping taxpayers to get their tax affairs correct in the future rather than concentrating on the past.
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November 2005 by