The accountants & business advisers says the lengthy guidance, issued yesterday, may lead unrepresented taxpayers down the wrong path.
PKF director of personal tax services Matt Coward says: “As far as individual taxpayers are concerned this guidance is too much and too late – as well as being potentially misleading, or incorrect in some circumstances.”
HMRC’s new 85 page booklet HMRC 6 replaces booklet IR20 which has long been used as guidance on residence and domicile issues for self-assessment taxpayers. Its new internal manual on the remittance basis runs to 274 pages of guidance.
Coward says: “The flowcharts aimed at helping individuals self-assess their domicile status could be dangerous. Unless you are already an expert in this area, using them could produce an incorrect answer and taxpayers should not use them in isolation to determine their tax status.
“In other parts of the guidance, the tone of HMRC’s commentary could be perceived by taxpayers as threatening. If eligible individuals are deterred from making a claim, they could end up paying more tax than they are legally required to.“