Managing serious defaulters

Produced by Tolley in association with

Owner-Managed Businesses

Guidance

Introduction

The managing serious defaulters (MSD) programme is an enhanced monitoring programme for certain individuals and businesses who have been found to have deliberately evaded the tax system and who HMRC therefore consider are ‘high risk’. It looks closely at a defaulter’s tax affairs to ensure that they are complying with all their tax obligations and tackles ongoing risk through early compliance activity. HMRC’s aim is to deter people from defaulting in the future and to reassure honest taxpayers that serious defaulters will be penalised and their tax affairs closely supervised.

Individuals and businesses will be notified by HMRC of their inclusion in the programme, and a copy of the letter should be sent to the authorised agent.

The letter is accompanied by factsheet CC/FS14.

It should be noted that there is no monetary limit that must be breached before someone is included in the scheme. There is also no right of appeal against inclusion in the scheme. However, the defaulter will have exhausted all appeals processes and internal review processes before

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Guy Smith

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