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- APPRENTICES
- April Bembridge – Chief People Officer, Cooper Parry
- Are You Claiming The Right Amount? Gated
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- Audit and Assurance
- AUDIT FOR AIM LISTED COMPANIES
- B CORP
- Bundle and Pricing Options
- BUSINESS SERVICES INSIGHTS
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- CAPITAL ALLOWANCES
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- Contact Thank You
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- CP INNOVATION – WHAT OUR CLIENTS SAY
- CP INNOVATION FULL PAGE. – DRAFT
- CP Tech 100
- CPERS: COOPER PARRY ENQUIRY RESOLUTION SERVICE
- Creative Tax Reliefs
- CULTURE
- DIVERSITY POLICY
- Early Stage To SME- WHAT OUR CLIENTS SAY
- Ecommerce
- Eddie Latham & PJ Scott – Co-founders, Velocity Commerce
- Education
- EMPLOYMENT TAX
- FAQS
- Financial Reporting
- Find Us
- Flexible ‘Finance Bench’
- Future Events
- Galahad Clark – Founder VivoBarefoot
- GLOBAL TALENT PROGRAMME
- GRADUATES
- HEALTHCARE INSIGHTS
- Helena Hills – Founder & CEO, TrueStart
- HIGH GROWTH LOW DOWN
- Homepage
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- Impact Beyond Business
- Impact Beyond Business New template
- In Their Words
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- INDIRECT TAX
- Inheritance Tax
- Intellectual Property & Patent Box
- INTERNATIONAL TAX
- Investment Calculator UK
- James Hyde – Founder & CEO, James and James
- Jay Richards & Cat Agostinho – Co-Founders, Imagen
- Justin Harling – CEO, CAE Technology Services
- LANDLORD
- LEGAL STUFF
- Let’s Stop Calling It R&D V2 Gated
- Life at cooper parry
- Lounge Underwear Webcast
- MAKING TAX DIGITAL
- Management Information and Reporting
- MANAGING AGENTS
- Manufacturing Tax and Advisory
- Marketing Thank You
- MID MARKET – WHAT OUR CLIENTS SAY
- Mid-Market
- New Hub CP
- New Hub CP Live Lounge
- Newsletter Form
- Newsletter Thank You
- NFP Webcasts And More
- Not For Profit Audit
- Operational Systems & Technology
- Our People
- Meet the Team
- Meet the Team Retail
- Our People – Big Business
- Our People – Board
- Our People – Business Tax
- Our People – Capital Allowances
- Our People – Corporate Finance
- Our People – CP Innovation
- Our People – Facilities & Wellbeing
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- Our People – Tech & High Growth
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- Our People – VAT
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- Our People Audit
- Our People Team
- Our Why And Values
- Outsourcing
- OVERSEAS EXPANSION
- Past Events
- Paul Richardson – Executive Chairman, Gymshark
- Paul Turton – CEO, Pact Coffee
- PENSIONS AUDIT
- Personal Tax
- Personal Tax Compliance
- PLACEMENTS
- Preference Centre
- PRIVACY POLICY
- Private Equity Advisory
- PROPERTY AND LANDLORDS
- R&D Capital Allowances
- R&D Newsletter Thank You
- R&D Tax Credits Questionnaire: Are you eligible?
- Raise investment or debt
- Raising Finance
- Read All About It
- Rebelution 2
- Rebelution 2 Top Tips – Cooper Parry Corporate Finance
- Rebelution 2 Top Tips – Cooper Parry IT
- Rebelution 2 Top Tips – Cooper Parry Wealth
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- Research & Development Tax Credits
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- RESIDENCE & DOMICILE ADVICE
- Retail
- Retail Advisory
- Retail Tax
- Rob Law MBE – Founder, Trunki
- Scale Up & High Growth
- SECURITY POLICY
- Service Charge
- Service Test
- SETTING UP BUSINESS IN THE UK
- SHARE INCENTIVES AND REWARD
- Share incentives: Annual Reporting
- SHAREHOLDER TAX ADVICE
- Shaun Doak – CEO, React Group Plc
- Small Business
- SNAPSHOT
- Succession Planning
- Supporting start ups
- SUSTAINABILITY
- Tax – What our clients say
- TAX COMPLIANCE SERVICES
- Tax Services
- TAX SETTLEMENTS AND INVESTIGATIONS
- Tech & High Growth
- Tech & High Growth – What our clients say
- TEN STAGES TO INVESTMENT
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- Test2
- This Is Us
- Tom and Tina Warner – Co-Founders, Warner’s Distillery
- Transaction Deals
- Transaction Services
- Transaction Services – What Our Clients Say
- TRANSACTION TAX
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- Trusts and Estates
- UK support for International groups
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HMRC first introduced risk reviews for large companies in c.2007 to help them assess the level of involvement HMRC should have in a company’s tax affairs. Put simply, a low risk company should be able to expect fewer tax enquiries. However, in practise the tax risk rating issued rarely seemed to impact on the relationship with HMRC.
In 2017, HMRC conducted a consultation into the risk review process. This consultation highlighted several areas of improvement, prompting HMRC to reconsider the process.
Findings from The Report
The main changes are, the new risk assessment procedure will have four categories of risk, rather than two:
- low risk;
- moderate risk;
- moderate-high risk; and
- high risk.
A category will now be applied to each type of tax e.g. Corporate, Indirect taxes and Employment taxes.
The ratings will be based on inherent business complexity along with three behavioural factors:
- The businesses approach to compliance
- Internal governance
- Systems and delivery
In contrast to the current process, HMRC have confirmed under the new regime, inherent business complexity will not stop a business from being low risk.
The exact benefits of being low risk are currently still to be confirmed but initial suggestions have been less intervention and enquiries from HMRC and more timely responses to requests for clearance.
When Will This Be Effective?
In March, HMRC have conducted a trial of the new regime with 65 businesses with 97% of respondents confirming they thought the process should change to that tested. HMRC have since announced they will roll out the new process from 1 October 2019.
What Should Companies Do Next?
Businesses who want to retain a low risk rating will need to demonstrate that they have a strong tax framework in place with clearly defined accountabilities and controls. This framework should be monitored and tested regularly to ensure it is still fit for purpose and includes updates for new regulations.
If you want to discuss how this may affect your business please feel free to get in touch.
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