Tax advice of the week: Keep your return nondescript
Sep 18, 2009
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With the 31 October deadline fast approaching for the paper filing of individual self-assessment tax returns, Fiona Fernie of BDO Stoy Hayward in The Times has some tips on how to lessen the chances of your return being singled out by HMRC officers for a special investigation.
• Don't file late: it attracts attention.
• Offshore investments are like a "red rag to a bull" to a tax investigator. Anything offshore is likely to come under suspicion, including offshore trusts, which have often been used as a way of sheltering income and capital gains from tax.
• A large capital gain will "always set red lights flashing". Seek professional advice.
• "Be careful with charitable donations": charities are increasingly used as tax evasion vehicles so gifts may draw scrutiny.
• Avoid ostentatious displays of wealth, expensive toys and don't discuss your tax affairs with friends. You never know where information will end up.