Tax & Accounting News

Accountants May Be Forced To Disclose Client Details

23/07/2009

High earners are set to face further scrutiny from HM Revenue and Customs (HMRC), which has asked the government to grant it new powers to force accountants to disclose the names and addresses of clients who engage in schemes to avoid the new 50% income tax rate.

The move comes amid speculation that many individuals will seek to avoid the tax rise by taking part of their salary in share options rather than cash, on which they would pay capital gains tax, charged at 18%, rather than income tax.

Consultation on the proposed ‘specialist information powers’ ends in October, so they could be in force in time for the next tax year, if approved.

HMRC is also looking to extend its powers to collect more information from letting agents. Currently it can only ask them to disclose details of the landlords they currently collect rent for, but HMRC also wants to be able to gain details of landlords who have been introduced to a tenant for a fee in the past, but now receive rent directly.

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