A few weeks ago HMRC published their first list of businesses who they say are deliberately defaulting paying tax. Richard Murphy has suggested that only little people are named and shamed for not paying tax but I would like to raise another point
What is the point of HMRC naming and shaming businesses when they have failed to collect the tax and penalties and will probably never ever receive a penny of the amount due?
The Trade Beverage Company Ltd of Mobberley owed £156,000 in corporation tax and £292,000 in penalties but according to the Manchester Evening News the company
was set up in March 2009, but 13 months later defaulted on a tax payment. It did the same in February 2011 and again in the following September. Last March it was served with a winding up notice and is now listed as being in liquidation.
HMRC would be better spending their time collecting the tax rather than naming and shaming people who are probably not bothered about the publicity. However, as I have explained previously, it’s not HMRC’s fault.
Yet another copy of VAT Notes has been released by HMRC.
I have said previously that it isn’t the most exciting read you’ll come across but HMRC do expect you to read it (even though they don’t send you a copy any more!)
The full notes are here.
As yet another high street retailer closes the shutters, we have an opportunity to vote on the following
Tax avoidance: fair or foul?
Don’t be put off by the fact that its being run by AccountancyAge or because its only for professionals, it isn’t.
The arguments for and against are put simply by Richard Murphy, the director of Tax Research UK, and Stephen Herring, a tax partner in BDO.
Please vote by clicking here.
It will make a difference.
Posted in Accountants, Corporation tax, HMRC, Income tax, Microbusinesses, National Insurance, Self Assessment, SME, Tax avoidance, Them and Us, VAT by Stuart Jones, January 15, 2013 09:32 Comments (0)
Yet another copy of VAT Notes has been released by HMRC.
I have said previously that it isn’t the most exciting read you’ll come across but HMRC do expect you to read it (even though they don’t send you a copy any more!)
The full notes are here.
HMRC have reintroduced their Business Records Check.
Their pilot programme started in April 2011. More than a third of the 3,500 businesses checked “had some issue with their record-keeping” and just under 5% had “issues serious enough to warrant a follow up visit”.
Since 2011 HMRC have reviewed their procedures and are now targeting businesses “who are more likely to be at risk of inadequate records”, whatever that means!
Under the new system HMRC will write to you and then contact you by telephone to ask about your records. When they phone they will ask you questions to help them work out if you are keeping the business records you need. The telephone call should last between 10 and 15 minutes.
- If your records are adequate HMRC will tell you during the phone call and confirm it in writing and that will be the end of it (thankfully).
- If they think you need more help they will pass your details to their Business Education & Support Teams to tell you about self-help and training.
- HMRC may, however, decide your records are inadequate and you need a face to face visit. If your records they will specify what changes need to be made and arrange a follow up visit within three months to check you’ve made those changes.If you haven’t you’ll be fined.
The chances of being phoned are small but you don’t want HMRC visiting your business. Despite their apparent willingness to help you “pay the right amount of tax at the right time to avoid interest and penalties” these visits are nothing more than fishing expeditions.
They will use it as an opportunity to make sure you are operating PAYE correctly (don’t forget there is no such thing as casual labour), to check benefits in kind (if you’re trading as a limited company) have been recorded properly and to make sure your VAT is correct.
Next week I shall give you some advice to make sure HMRC, at worst, just phone you because they realise your records are “adequate”.
Posted in Class 4, Corporation tax, HMRC, Income tax, Limited company, Microbusinesses, PAYE, Self Assessment, SME, Tax investigations, Tax tips, VAT by Stuart Jones, November 30, 2012 07:11 Comments (1)
Yet another copy of VAT Notes has been released by HMRC.
I have said previously that it isn’t the most exciting read you’ll come across but HMRC do expect you to read it (even though they don’t send you a copy any more!)
VAT Notes 3 of 2012
Yet another copy of VAT Notes has been released by HMRC.
I have said previously that it isn’t the most exciting read you’ll come across but HMRC do expect you to read it (even though they don’t send you a copy any more!)
VAT Notes 2 of 2012
Yet another copy of VAT Notes has been released by HMRC.
I have said previously that it isn’t the most exciting read you’ll come across but HMRC do expect you to read it (even though they don’t send you a copy any more!)
VAT Notes 1 2012 Budget Supplement
Yet another copy of VAT Notes has been released by HMRC.
I have said previously that it isn’t the most exciting read you’ll come across but HMRC do expect you to read it (even though they don’t send you a copy any more!)
The full notes are here.
Just before Christmas I was delighted to discover that HMRC are now accepting payments made using the Faster Payments Service.
Despite seeing this message on the screen when you file your VAT return
Please note: HMRC does not operate the Faster Payments Service (FPS), which is offered by some banks. Electronic payments will normally take three bank working days to reach the HMRC account.
the system does work!
The Tax Faculty of my institute have confirmed this. So don’t panic just do it.
