Investigations

Employers who do not pay their workers the national minimum wage (NMW) will face a greatly increased penalty under stricter regulations expected within the next few weeks.

Non-compliant firms currently face a sanction of all unpaid wages and a fine calculated as 50% of the total underpayment for all employees affected to a maximum of £5,000, which is reduced half if the unpaid wages are settled within 14 days.

The new regime will increase the penalty to 100% of the unpaid wages, with the cap rising to £20,000.

UK taxpayers with hidden assets in the Cayman Islands face scrutiny by HMRC over evasion, tax investigations experts have warned.

The Revenue is issuing letters to encourage people it believes hold bank accounts in the British overseas territory to disclose undeclared income and capital gains.

Sean Wakeman, tax investigations partner at Crowe Clark Whitehill, said,“Account holders are warned that if no response is received within 30 days, a detailed inquiry will be launched that could lead to a criminal investigation.

Advice is given on the powers of HMRC to extend an informal enquiry into a company’s affairs to the personal tax returns of a director

Dr J Kohal (TC2870)

How Orwell’s classic novel foreshadowed HMRC’s current behaviour

Lack of formal records is not always fatal to a claim for tax-free mileage allowance

E Behague (TC2983)

Making use of the alternative dispute resolution process

The Revenue’s approach to tax dodging and the questions advisers should be asking clients

The result of Mehjoo prompts advice for fledgling tax advisers

Employers are being given the chance to settle open enquiries into the use of employee-financed retirement benefit schemes (EFRBS) arrangements by agreement and without needing to take part in litigation.

Firms have until 31 December 2013 to consider the two options offered by HMRC:

M Freeman (TC2885)