Talking tax: HMRC words and meanings

Struggling to understand the jargon? Check out this easy-to-understand glossary of terms used by HMRC, or agencies such as the National Crime Agency who use HMRC’s powers.

Negotiating the language of HMRC can be like picking your way through a minefield. If you don’t see what you need, or you’re still unsure about what something means or its significance to your situation, call InTAX now in confidence for a no-obligation chat. Speak to an advisor.

Term Meaning
CDF Contractual Disclosure Facility – the tax investigation process conducted under Code of Practice 9
CoP 8 Tax investigations into fraud and bespoke avoidance that are not conducted under Code of Practice 9
CoP 9 HMRC’s Code of Practice 9 – tax investigations into fraud, usually settled on a civil basis. Sometimes called the Contractual Disclosure Facility (CDF)
Determination An amount of money that HMRC decides a person owes. Can relate to tax, NIC or penalties.  Tax determinations cannot be appealed, but they can be ‘displaced’ subject to time limits.
Assessment An amount of money that HMRC decides a person owes. Can usually be appealed subject to time limits.
IR35 The legislation used to determine whether a person working through a personal service company is actually an employee of their ultimate client and should pay tax under the PAYE rules.
GAAR General Anti Abuse Rule
LDF Liechtenstein Disclosure Facility
MDD Managing Deliberate Defaulters.
PDDD Publishing Details of Deliberate Tax Defaulters
Tax Avoidance Legal tax planning, sometimes considered ‘not to be within the spirit of tax law’
Tax Evasion Minimising tax payable through illegal methods
Tax Enquiry Essentially another name for Tax Investigation
Compliance Check A tax enquiry that often looks at real time processes and procedures.
DOTAS Disclosure of Tax Avoidance Scheme
FATCA Foreign Account Tax Compliance Act – requires US residents to report their financial accounts held outside the US, and foreign financial institutions to report their clients to the US authorities.
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