Tax, investigations and financial crime

Contact: Adam Craggs

Tax, investigations and financial crime

Tax Bites – February 2025

RPC's Tax Bites provides monthly bite-sized updates from the tax world. Updates from February's edition include:

HMRC has updated its Guidance on umbrella company compliance
HMRC has introduced a voluntary disclosure service for businesses that have overclaimed R&D tax relief and updated tax relief claim procedures
HMRC has amended its Guidance on digital platform reporting rules and DAC 7 equivalence
HMRC has updated its Guidance on taxation of cryptoasset disposals
Loan Charge - Court strikes out taxpayers' Part 8 claims
Upper Tribunal considers when a dividend is 'due and payable' for tax purposes
Upper Tribunal allows taxpayers' appeals on 'deliberate' behaviour

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More newsletters from our tax team

HMRC launches new R&D voluntary disclosure platform amid increased enforcement and compliance efforts

HM Revenue & Customs (HMRC) has introduced a new specialist research and development (R&D) voluntary disclosure platform. This development follows a surge in HMRC R&D compliance activity, including a number of high-profile raids and arrests. It is estimated that over £1bn has been lost to the Exchequer in recent years due to speculative or fraudulent R&D claims, prompting HMRC to take decisive action. The new platform allows companies or their agents to disclose innocent or careless inaccuracies in R&D tax relief claims that are now out of time for amendment in tax returns. The disclosure is made by submitting an online form and supporting computation.

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HMRC sets out labour chain risk approach

HMRC has published a manual setting out how it handles tax risks and illegal working practices in labour supply chains. This includes work to improve processes and informing legislation, non-compliance investigation and enforcement as well as sharing guidance and information to increase awareness among businesses.

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Updated analysis on risk of money laundering through the markets

The Financial Conduct Authority (FCA) published an updated version of their analysis on money laundering through the markets (MLTM) risk. The threat of MLTM consists in moving cash originated with criminal means through capital markets to make it appear legitimate. A part of its analysis the FCA reviewed financial crime systems and control at a number of wholesale brokers and found good practice and progress. However, the FCA also noted the need to improve risk mitigation and maintain reviews of crime systems and controls, MLTM awareness and training.

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Taxing Matters: Mike Ashley wins landmark data protection case against HMRC

At the end of January, Mike Ashley won his high-profile and landmark data protection case against HMRC, with the High Court concluding that HMRC wrongly withheld his personal information for over two years. In this episode of Taxing Matters, our host and Senior Associate, Alexis Armitage is joined by Megan Grew, Associate at RPC and part of Mike Ashley's legal team, to discuss the legal aspects of the case that led to a landmark data protection victory against HMRC for Mike Ashley in the High Court.

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