More worrying details have come to light regarding the HMRC’s tax code blunder.

In a report by the BBC, revenue employees stated that the new system, in numerous cases, cannot be relied upon to generate the correct tax codes and the general feeling is that this situation is getting worse, not better.

An employee, who wished to remain anonymous, claimed that the testing of the new system was inadequate – it stopped short of issuing new tax codes, the point at which the system has gone wrong.

The Revenue denied this claim. It said: “Annual coding was subjected to rigorous testing, with … Continue Reading

The 31 January tax deadline for online self-assessment forms is only weeks away and, according to research by Unbiased.co.uk, taxpayers are set to be charged an unnecessary £503 million this year in fines generated by late returns, miscalculations and surcharges on unpaid tax. The research also reveals that this amount has increased by £24 million on estimations for last year.

Failure to get forms to Her Majesty’s Revenue & Customs (HMRC) by the fast-approaching deadline will incur an initial £100 late payment charge. If the form still hasn’t been returned by 31st July, there will be a further penalty of £100. … Continue Reading

Welcome to December’s tax tips & news, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our Question and Answer Corner.

We are committed to ensuring all our clients don’t pay a penny more in tax than is necessary.

Please contact us for advice in your own specific circumstances. We’re here to help!
Tax Deductions for Franchise Fees
One of the easiest ways to step into the world of business is to acquire the right to operate a … Continue Reading

HM Revenue & Customs (HMRC) is reminding students that they may not need to pay income tax on their earnings, if these are below their Personal Allowance for the year.

For any student planning to work over Christmas, if they expect to earn less than £6,475 in the tax year to 5 April 2010 and complete a form P38(S) at the beginning of employment – they will be entitled to receive their money tax free.

Students can find all the information they need at Direct.gov.uk/studenttaxadvice.

Furthermore, students who have worked part-time throughout the year, and think they may have paid too much … Continue Reading

HM Revenue & Customs (HMRC) has issued a leaflet, warning VAT-registered businesses to get ready now for major changes to VAT return filing and payment, that will come into force next April.

The leaflet has been sent to all 1.9m VAT-registered businesses to alert them to the fact that, from 1st April 2010, those with an annual turnover of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically.

Under the changes, businesses registering for VAT on or after 1st April 2010 will also have to file their return online and pay electronically, whatever … Continue Reading

HM Revenue & Customs (HMRC) has issued a reminder to anyone who hasn’t yet submitted their 2008-09 Self Assessment tax return.

The reminder stresses that the 31st October deadline for paper returns has now passed, which means anyone yet to file must do soonline by the 31st January deadline. HMRC warns that if you submit a paper return after 31st October, or you file online after 31st January, you could receive a £100 penalty.

HMRC are expecting more than 9.5m Self Assessment returns this year. Around 5.8m people filed online last year, up from 3.8m the previous year – an increase of over … Continue Reading

A new Charter setting out what individuals, businesses and other groups dealing with HM Revenue & Customs (HMRC) can expect from the department, as well as what it expects from them, was launched today.

Under the Charter, HMRC gives a commitment to:

• respect individuals and businesses;
• help and support them to get things right;
• treat them as honest;
• treat them even-handedly;
• be professional and act with integrity;
• tackle people who deliberately break the rules and challenge those who bend the rules;
• protect their information and respect their privacy;
• accept that someone else can represent them; and
• do all it can to keep the cost of dealing with HMRC as low … Continue Reading
  

Offshore tax dodgers are being warned they have one final chance to come clean, or face the consequences, in a YouTube video posted by HM Revenue & Customs (HMRC).

In the two-minute video, Dave Hartnett, HMRC’s Permanent Secretary for Tax, warns that anyone with undeclared offshore bank accounts who doesn’t come forward under HMRC’s New Disclosure Opportunity (NDO) will face much higher penalties and even criminal prosecution.

Dave Hartnett says:

“For some people, offshore bank accounts and tax havens typically conjure up images of exotic and far away places, well out of the reach of the taxman at home. Well, life’s just not … Continue Reading

If you’re planning on filing your 2008/09 tax return on paper this year, you must get it to HM Revenue & Customs (HMRC) by 31st October. Leave it too late, and you could end up with a £100 late-filing penalty.

If you are concerned you may miss the paper deadline, you can choose to switch to online filing.

The online service has a number of benefits:

• online returns don’t have to be filed until 31st January, so you get three months longer to file;
• your tax is calculated automatically;
• you get an immediate online acknowledgement once you’ve filed;
• it’s processed faster, so any money … Continue Reading
  

A record 83,000 scam emails offering fake tax refunds were reported in September, according to HM Revenue & Customs (HMRC).

An unprecedented 10,000 reports of the fraud, known as ‘phishing’, were made to HMRC on one day alone. The fraudulent email tells the recipient they are due a tax refund and then asks for bank account or credit card details. Anyone who gives these details to the fraudsters risks finding their bank accounts cleared of funds or their credit cards spent to the limit. In some cases, the victim’s details are sold on to other criminal gangs.

John Harrison, Head of HMRC … Continue Reading