Background
The new legislation is designed to provide a modern framework of law and practice for HMRC.
Measures brought in by FA08 will change the way HMRC officers check the tax position of individuals, companies, employers and any other VAT registered bodies.
From 1st April 2009, HMRC will have one set of powers covering PAYE, VAT, Income Tax, Capital Gains Tax and Corporation Tax to:
- visit business premises to inspect the premises, assets and records
- ask taxpayers and third parties for information and documents
These measures include taxpayer safeguards to ensure that the powers are used by HMRC officers appropriately.
The powers also include:
- Greater flexibility in setting record keeping requirements after 1 April 2009.
- New time limits for making assessments and claims. These will not be fully in force until 1 April 2010, and there will be transitional arrangements from 1 April 2009.