HMRC’s Wealthy External Forum is sending letters to individuals registered at Companies House as being ‘Persons of Significant Control’ (PSC).
A PSC is someone who holds more than 25% of the shares/voting rights in a company and has the power to influence company decisions (including hiring and firing the board!).
Are you aware that there are tax consequences of the company paying your personal costs, if you have used (or have been given) assets belonging to the company, being loaned cash by the company and accepting options to purchase shares, for example?
If this applies to you, have you included details on your Tax Returns?
Do you have foreign employment income and are intending to claim relief for the foreign tax against your UK tax liability?
If you are, you may receive a reminder letter from HMRC about the eligibility to claim Foreign Tax Credit relief. Included within the list of points to consider is the need to check the provisions of the relevant Double Tax Treaty and whether it allows for the other country to deduct tax. If not, then tax relief must be claimed from that other country, rather than through your UK Tax Return.
It is your responsibility to make sure your Tax Return is complete and correct – if you have received a letter from HMRC recently and want to be sure you are reporting your income and benefits correctly and claiming the right amount of foreign tax credit, please do call one of our friendly tax advisers on 01223 810100 for help and guidance.
