Tax can feel like a minefield at the best of times. HMRC’s recently published Guidelines for Compliance 13 (GfC13) attempts to address this problem by spelling out what they expect from taxpayers dealing with complex or uncertain tax situations.
When these guidelines matter
The guidance isn’t meant for straightforward tax situations – it’s designed for those tricky areas where the law isn’t crystal clear.
You might need to consider these guidelines if you’re:
- Trying something completely new that hasn’t been tested in court
- Genuinely unsure about the correct tax treatment despite your best efforts to figure it out
HMRC distinguishes between “novel” interpretations (where no court has ruled on the issue before) and “improbable” ones (where you suspect the courts probably wouldn’t agree with your position). Their advice is to not file returns based on interpretations you think are unlikely to succeed.
Getting help when you’re stuck
If you’re genuinely uncertain about a tax position, HMRC suggests several options. You can apply for non-statutory clearance in some circumstances or seek professional advice, though they’re clear that you need to choose someone properly qualified and give them all the relevant facts.
Crucially, even if you take professional advice, you remain responsible for the accuracy of your return. The adviser’s opinion doesn’t shift liability away from you.
Dealing with ongoing uncertainty
Sometimes, despite your best efforts, you simply can’t resolve a tax uncertainty. In these cases, HMRC wants you to flag this when submitting your return by providing:
- Your name and unique taxpayer reference
- A clear description of the issue
- The interpretation you’ve applied
- How this affected your tax calculation
For self-assessment, this information goes in the “white space” section. For corporation tax, include it in your computations or as an attachment.
How we can help
If you’re facing uncertainty in your tax situation, it’s crucial to get the right guidance. EKWilliams Chartered Accountants can help you assess your situation and ensure you’re meeting HMRC’s expectations.
If you’re unsure about the tax treatment or dealing with novel issues, get in touch today.