HMRC: Proposed Financial Institution Notice
They do need your agreement ...
Posted by Helen Beaumont on 02/09/2020 @ 8:00AM
Recently, the Government published the Finance Bill 2020/21 and introduced the Financial Institution Notice (FIN). HMRC will be able to demand banks and other financial institutions give them details about individual taxpayers ...
Any information HMRC gains with a Financial Institution Notice must be used to check the tax position of an individual taxpayer!
copyright: mehaniq / 123rf
HMRC will use FINs to check individuals tax position and help with debt collection, although they must give the taxpayer good reason why the information is needed, except where a tax tribunal rules this condition does not apply.
"They do need the agreement of the taxpayer before issuing a FIN!"
Any information HMRC gains must be used to check the tax position of an individual taxpayer. If the request is international, the FIN must be relevant to the collection of tax in that particular overseas juristiction and all domestic routes for getting the information have been exhausted.
Financial Institution Notices can also be issued to credit card companies with the same legal force as banks and should they fail to comply with the demand, HMRC can charge them penalties for non-compliance.
HMRC hopes that FINs will reduce the amount of time needed to deal with the international exchange of information, bringing the UK in line with international standards on tax transparency.
This currently takes around 12-months where the international target is set at six.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about Financial Institution Notices and how one may affect you as a taxpayer, call me on 01908 774323, leave a comment below or click here to ping over an email and let's see how I can help.
About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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