HMRC has prepared a summary of its approach to tax fraud that is useful for agents to be aware of. HMRC’s approach, in overview, consists of:

• building checks and controls into its systems;
• keeping legislation updated to make it more difficult or impossible to commit tax fraud; and
• working with businesses to help them spot when they are at risk of tax fraud.

Regarding  the final point, tax professionals can help taxpayers from committing or being involved in tax fraud by understanding HMRC’s approach and applying the guidance in Professional Conduct in Relation to Taxation (PCRT). This guidance was prepared jointly by seven professional bodies and associations, including ICAEW.

PCRT could be particularly useful when discussing complex tax filing positions with clients. When receiving queries from HMRC in which fraud is alleged, it is important that the enquiry is handled or overseen by a professional with relevant expertise in this area. Tax Faculty members can access support from specialists via TAXconnect.