 ‘Non-Dom’ own goal creates headache for tax authorities
- Legislation compels up to one million more people to complete tax returns –
20 May 2008: The ability of HM Revenue & Customs to cope with the consequences of the new non-domicile legislation in the Budget has been questioned by tax experts at accountants PKF who say the move could cause administrative chaos.
Partner Philip Fisher has pointed out in an open letter to HMRC Acting Chairman Dave Hartnett that up to one million people including temporary economic migrants from the EU, first and second generation immigrants and city secondees will be affected. They will have to complete forms detailing their worldwide income and/or agree to pay additional tax, which will then have to be collected.
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 | Philip says: “While media focus has been on super rich non-doms, the Treasury appears to have forgotten the mass of people who will have to make complicated returns for tiny sums of tax. |
“With morale and staffing levels at HMRC at an all time low, their capacity to process the paperwork and collect the tax must be in doubt. Unless they drop the plan, the only sensible thing for the Government to do is to impose more generous cash or time limits, otherwise there could be gridlock at HMRC”, he concludes.
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For further information or to interview Philip Fisher, please contact:
Jane Murray, PR Executive, 020 7065 0135
For general enquiries please contact our switchboard on 020 7065 0000
Notes to Editors:
- Philip Fisher has written an open letter to Dave Hartnett in Taxation Magazine expressing concerns about the new non-dom rules. This is available by clicking here.
- In the past, those who were not domiciled in the UK have generally not been taxable on income and capital gains from overseas, unless the funds were brought into the UK. This also affects those seconded to the UK for relatively short periods.
- PKF have produced a document highlighting the changes to the rules for non-domiciliaries and how addressing these before they become problems will help employers retain key employees and control staff costs. To download the document please click here.
- PKF is a leading firm of accountants and business advisers with more than 1,800 partners and staff operating in 23 offices in the UK mainland firm, a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
- PKF (UK) LLP is a member of PKF International which is an association of legally independent firms with more than 14,650 people operating in 119 countries around the world.
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