HMRC’s Code of Practice 9 (COP9) leaflet outlines the procedures for any investigations into serious fraud by HMRC. COP9 covers both direct and indirect taxes and includes confirmation from HMRC that taxpayers will be treated fairly and courteously. Investigations of this type by HMRC are designed to ascertain the full facts of a case and to collect any tax liabilities, penalties and interest deemed owing in cases of fraudulent conduct.

Many investment properties are acquired through a limited company for a variety of reasons.
 
Complications arise when this structure is no longer appropriate, for example, there may be a desire to gift to a child, and extracting a property from a company back into private beneficial ownership can be a costly affair. Tax costs arise both for the company disposing of the property and for the purchasing connected party.

If you decide to become self employed, it is vital that you register with HMRC by 5th October following the end of the tax year in which you became self employed.  If you do not follow this process, you may be liable to a penalty based on the tax that is due to HMRC.