HMRC has announced that it will be closing its telephone lines for 3 days during December, to redirect staff time into dealing with a backlog of letters and queries. The phone lines are those primarily dealing with VAT and Corporation tax queries but other services may also be affected as the department tries to deal with a backlog that has built up during the pandemic.
Having identified that their calculations may have contained an error, HMRC has announced that it is set to review the tax returns of around 30,000 individuals, to address concerns that some may have been overcharged. The issue is believed to be isolated to tax bills issued in 2016/17 and specifically relating to the personal savings […]
Over 20,000 freelancers and contractors that used offshore-based umbrella schemes to disguise their income over the last 20 years will have to repay an average of £50,000 in unpaid taxes, HMRC says. Responding to a deadline of 31st May to register earnings held or managed in these trusts, almost 21,000 people had declared their involvement […]
Amid much talk of further tax rises in the pipeline, to help offset the impact of Brexit and to support the Governments planned spending increase on the NHS, HMRC has announced that it had a record tax take in the 17/18 tax year. The total take of just over £605 billion is up 5.4% on […]
Having identified that they are responsible for almost 50% of the £34billion of uncollected tax in 2015-16, HMRC has confirmed that it is focusing its efforts on around half-a-million small businesses at any time. There are some 5 million small businesses in the UK and the move by the tax man has been criticised by […]
With just 12 months until it was meant to be fully launched and having already suffered delays to what was an ambitious roll out plan, HMRC’s Making Tax Digital (MTD) strategy has now been put on hold, indefinitely. In a statement to tax professionals in April, HMRC made it clear that the impact of preparations […]
Recent HMRC cases against individuals and businesses have once again shone a light on the use and payment of family members in the business. In one case, a tribunal judged that payments to a son had been made out of parental love and affection and were not wholly for the purposes of the trade. In […]
So, we have now enjoyed our first autumn budget. The move to an autumn budget is a welcome one across industry as it gives businesses and individuals time to adjust and digest before changes take effect. Being cynical it also leaves plenty of time for U-turns… We say we enjoyed the autumn budget because, as […]
Flat Rate VAT Rates to Change The introduction of Flat Rate VAT (FRV) was meant to simplify VAT management for smaller organisations with limited purchases and a capped value of sales. The alternative method of calculating VAT allows businesses to pay a single flat percentage rate, which is lower than the prevailing rate (currently 20%), […]
As of 1st January 2015, a new regulation has come into place where VAT on digital products sold in the EU is chargeable in the place of purchase rather than the place of supply. VAT Mini One Stop Shop (MOSS) has been introduced to stop large corporations diverting sales through low-VAT countries. However, regardless of […]
Many small businesses have welcomed the announcement by HMRC that it intends to move away from automatic penalties for tax to a less rigid approach. As part of the drive, a “more proportionate approach” will be taken when small employers miss PAYE filing deadlines. This announcement follows on the back of HMRC accepting “reasonable excuses” […]
Small business owners should be aware that RTI penalties for companies with less than 50 employees kicked in from March 2015. RTI has now been in existence for a few years, gradually rolling out to businesses of all sizes and now that the system is fully implemented, the final part of the jigsaw is being […]