HMRC is launching seven new investigation task forces. Who’s being targeted this time?
After launching nearly 40 task forces in the last two years HMRC hasn’t yet run out of steam and the latest batch are aimed at different industries as far apart as the Isles of Scilly and Scotland. The new task forces are aimed at the:
Other forces. In the early days we heard through the grapevine that some of HMRC’s task force officers weren’t well informed about the industry sectors they were investigating. That’s less likely to be the case now, plus they are increasingly getting other forces involved, like the police and the Home Office. The latter will check that you’re keeping the right paperwork for any foreign workers you employ
Make the right first move. It’s easy for HMRC to say you have nothing to fear if you aren’t unfairly avoiding tax, but in our experience if it’s looking for trouble it might find it even where there isn’t any. Therefore, if you’re contacted by an HMRC task force we recommend speaking to your tax advisor immediately.
The list below sets out the main reasons why your client would need to fill in a tax return:
They were self-employed for any part of the tax year.
Partner in a business partnership
They were a partner in a business partnership for any part of the tax year.
They were a company director (unless this was a non-profit organisation and they didn’t receive payments or benefits).
Savings and investment income
They received £10,000 or more in the tax year.
They received £2,500 or more in the tax year.
Income from Property
They received income from property during the tax year of £10,000 or more (before deducting allowable expenses) or £2,500 or more (after deducting allowable expenses).
Foreign income that is liable to UK tax:
They received any foreign income that’s liable to UK tax.
Employment and wish to claim expenses or professional subscriptions
They were employed or a director. They have expenses or professional subscriptions of £2,500 or more to claim
They received income from all sources in the tax year of £100,000 or more.
Bankruptcy / Sequestration / Individual Voluntary Arrangement
They may need to fill in a tax return for the year in which they were declared bankrupt, sequestrated or entered into a voluntary arrangement.
High Income Child Benefit Charge
If your client’s income is more than £50,000 and your client or their partner received Child Benefit, they may need to fill in a tax return.
Don’t miss tax credits renewal deadline Individuals who were claiming tax credits for 2012-13 should be receiving a “Renewing your tax credits – Getting it right” pack.
It is vital that you complete the Annual Review form for the year ended 5 April 2013 and send it to the Tax Credits Office (TCO) Preston before 31 July 2013. Failure to do this will result in your tax credit payments being stopped and you may have to pay money back.
Claimants should note:
Tax return deadlines are 31 October for paper returns and 31 January for electronic returns following the end of the tax year to 5th April.
At first sight the Chancellor’s Autumn Statement did not contain much cheer, but things are not as bad as you might think. The restriction in pension tax relief caught the headlines, but has not yet been implemented. Although the pension annual allowance will fall to £40,000 as of 6th April 2014, there is still scope to use unused relief from previous years. Other non-contentious tax breaks are also still available for those who want to look for them.
With just over three months to go to the end of the tax year, it’s time for people with income of more than £100,000, especially those paying the top tax rate of 50%, to consider how to reduce their tax liabilities.
Accountants, Brighton, Hove, accountant
If you have not yet filed your 2011/12 tax return the self assessment deadline is the end of this month (31st Jan), if you miss this date by even a day you will incur an automatic £100 penalty regardless of the tax you owe. We can take the worry and stress away for a very competitive fixed fee, we offer weekend and evening appointments and free tax advice throughout the year, we will also deal with HMRC on your behalf, leaving you free time to concentrate on running your business.
HMRC has resumed its business records checks and is in the processing of writing to businesses all over the UK advising that they will receive a phone call from HMRC during which they will be asked a number of questions, their answers will be scored and if not satisfactory a HMRC visit will follow, this is something which should be taken seriously and I would recommend speaking to us or your current accountant before making the call. It is possible for the accountant to call on the clients behalf however this automatically reduces your scoring due to the way the system is setup therefore this is perhaps not the best option in most cases.
see recent article below on the subject
Choosing an accountant can be a daunting task which is why we have set out below some guidance to help you make the right decision for your business whether its a simple tax return or a prospering limited company/LLP
Should I pick the cheapest?
Unfortunately a number of accountants choose to compete on price rather than service, you want an accountant that will help your business grow not just compliance, see what services are being offered and always get fees agreed in advance. We are not the cheapest as we offer a 5* service to our clients however our fees are competitive.
Will the most expensive accountant provide the best service?
This is not the case in our experience, the larger firms tend to charge more than the smaller firms but the work is actually delegated to a junior member of staff, therefore you may find yourself paying a premium for a service which is not the best. Smaller firms (such as ourselves) offer a much more personal contact with a dedicated accountant which you can contact immediately who knows your business intimiately, all for a competitive fee, which can be paid monthly (in our case anway)
Do I need a local accountant?
Its helpful for meetings but not essential, the specialist service they provide is far more important, we look after clients in the surrounding area i.e Brighton, Hove, Portslade, Eastbourne, Shoreham etc however technology has enabled us to also look after clients all over the UK by liasing via telephone/email & skype etc
What else should I consider?
Once you have found your accountant treat him/her with courtesy i.e don't ignore them or send them your figures at the last minute and also make sure their fees are paid on time, this will ensure a mutually beneficial working relationship
If you would like us to provide a no obligation quotation or free consultation please don't hesitate to get in touch using the contact us link.
_The Self Assessment deadline is fast approaching for for the tax year ending 5th April 2012 and you need to make sure that you meet the following deadlines or you will receive a penalty from HMRC.
Deadline for Paper Returns
All paper returns must be received by HMRC by midnight on 31 October 2012.
The only exception to this is if HMRC have written to you after 31 July 2012 asking you to make a self assessment return. Then you have three months after the date on your letter to submit the return.
All self assessment notifications are usually sent out by HMRC during April.
Deadline for Online Returns
All online returns must reach HMRC by midnight on 31 January 2012.
Again you will only have an extension on this date if HMRC write to you requesting a self assessment return after 31 October and you will have three months from the date on the letter to submit the return.
If you want HMRC to collect any tax due through your tax code then you must submit your return before 30 December 2012. This is only an option if the tax owed is less than £3,000
Length of delay
Penalty you will have to pay
1 day late
A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late
£10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead.
These are as well as the penalties above.
A scheme which encouraged higher rate taxpayers to sort out their accounting at a reduced cost is set to end early next month.
HM Revenue & Customs (HMRC) sent out more than 7,000 letters offering people who are yet to file their accounts or pay tax for 2009-10 the option of lower costs if they sorted out their affairs ASAP.
They have until October 2 to respond, after which fines and charges will revert back to their normal levels.
The tax authority has not confirmed what those who do come forward before the deadline will be charged but it has said that it will be significantly lower than the costs taxpayers will be hit by if HMRC has to track to them down.
Marian Wilson, head of HMRC campaigns, said: “This campaign offers you a quick and straightforward way to bring your tax affairs up to date, but time is running out - you have until 2 October to submit your tax returns and pay the tax you owe.”
If you need help with getting your tax affairs up to date or need an accountant in Brighton get in touch with us to see if we can help
Licenced Accountant in Brighton