HMRC has been criticised for increasing the rate of interest it charges on late tax payments. The Guardian reports that HMRC now charges 3% interest on late payments, even though the Bank of England's base rate has stayed at 0.5% since March. A spokesperson from accountancy firm UHY Hacker Young said that this was a sign of HMRC "clawing more money from taxpayers".
For more on this story go to:
http://www.guardian.co.uk/money/2009/sep/18/interest-rate-late-tax-payments
www.ukba.co.uk
Showing posts with label hmrc. Show all posts
Showing posts with label hmrc. Show all posts
Sunday, 11 October 2009
Wednesday, 7 October 2009
HMRC could demand customer information from small businesses
HMRC is seeking additional powers to force businesses to provide extra information on their clients and customers, according to a leading accountancy group.
UHY Hacker Young says that currently HMRC largely restricts its requests for information on taxpayers to banks and estate agents, however it now wants the right to be able to routinely ask all companies for data on their trading partners. For example, companies could be asked to provide details on their suppliers so that HMRC can pursue those suppliers that it believes are not paying the right amount of VAT.
Last week, HMRC won a Court order to force over 300 financial institutions to reveal details of customers with offshore accounts. This being just the latest step in a long line of Government initiatives to give HMRC potentially draconian police like powers.
In its new consultation paper, HMRC proposes that banks and other data providers could also be asked to verify the identities of taxpayers, even where they would not collect this data for their own commercial purposes. For example companies could be asked to match national insurance numbers of customers with the date of birth of customers.
Read more: http://www.bytestart.co.uk/content/news/1_12/hmrc-customer-information.shtml
www.ukba.co.uk
UHY Hacker Young says that currently HMRC largely restricts its requests for information on taxpayers to banks and estate agents, however it now wants the right to be able to routinely ask all companies for data on their trading partners. For example, companies could be asked to provide details on their suppliers so that HMRC can pursue those suppliers that it believes are not paying the right amount of VAT.
Last week, HMRC won a Court order to force over 300 financial institutions to reveal details of customers with offshore accounts. This being just the latest step in a long line of Government initiatives to give HMRC potentially draconian police like powers.
In its new consultation paper, HMRC proposes that banks and other data providers could also be asked to verify the identities of taxpayers, even where they would not collect this data for their own commercial purposes. For example companies could be asked to match national insurance numbers of customers with the date of birth of customers.
Read more: http://www.bytestart.co.uk/content/news/1_12/hmrc-customer-information.shtml
www.ukba.co.uk
Thursday, 23 April 2009
Budget Summary - Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Read a summary report here.
Having acknowledged the depth of the recession, he hinted that the Budget measures would enable the UK economy to begin to grow 'by the end of the year'.
As always the timing of the changes needs to be carefully watched – some are immediate but some are delayed to 2010 and beyond.
Our summary focuses on the issues likely to affect you, your family and your business.
Main Budget proposals
:: Introduction of a 50% top rate of tax for those with income over £150,000 from 2010 and phased reduction of personal allowances for those with income over £100,000.
:: Increases in ISA limits from October this year for those aged over 50 and for everyone from April 2010.
:: Enhanced relief for trading losses extended by a further year.
:: Short term increase in capital allowances on most plant and machinery.
:: Extension of the furnished holiday lettings scheme to properties in the EEA but then the removal of the scheme completely from April 2010.
:: Names of deliberate tax defaulters to be published where default was tax in excess of £25,000.
Previous announcements
Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:
:: removal of the £12,000 'expensive car' limit for capital allowance purposes
:: availability of non-repayable tax credit on overseas dividends received by any individual
:: removal of tax charge for companies on overseas dividends
:: extension of HMRC compliance powers across all the taxes dealt with by HMRC.
For more details in the different areas the budget covered - click on the relevant link below:
Introduction
Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Personal Tax
Details of the changes to personal tax.
Corporate and Business Tax
Details of the changes to corporate and business tax.
Employment Issues
Details of the changes to employment issues.
Capital Taxes
Details of the changes to capital taxes.
VAT
Details of the changes to VAT.
HMRC Powers
Details of the changes to HMRC powers.
Other Matters
Details of Child Trust Fund, Charities: substantial donors, Landfill tax and the Business Payment Support Service.
Source: Faust Loveday Bell
www.ukba.co.uk
Having acknowledged the depth of the recession, he hinted that the Budget measures would enable the UK economy to begin to grow 'by the end of the year'.
As always the timing of the changes needs to be carefully watched – some are immediate but some are delayed to 2010 and beyond.
Our summary focuses on the issues likely to affect you, your family and your business.
Main Budget proposals
:: Introduction of a 50% top rate of tax for those with income over £150,000 from 2010 and phased reduction of personal allowances for those with income over £100,000.
:: Increases in ISA limits from October this year for those aged over 50 and for everyone from April 2010.
:: Enhanced relief for trading losses extended by a further year.
:: Short term increase in capital allowances on most plant and machinery.
:: Extension of the furnished holiday lettings scheme to properties in the EEA but then the removal of the scheme completely from April 2010.
:: Names of deliberate tax defaulters to be published where default was tax in excess of £25,000.
Previous announcements
Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:
:: removal of the £12,000 'expensive car' limit for capital allowance purposes
:: availability of non-repayable tax credit on overseas dividends received by any individual
:: removal of tax charge for companies on overseas dividends
:: extension of HMRC compliance powers across all the taxes dealt with by HMRC.
For more details in the different areas the budget covered - click on the relevant link below:
Introduction
Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Personal Tax
Details of the changes to personal tax.
Corporate and Business Tax
Details of the changes to corporate and business tax.
Employment Issues
Details of the changes to employment issues.
Capital Taxes
Details of the changes to capital taxes.
VAT
Details of the changes to VAT.
HMRC Powers
Details of the changes to HMRC powers.
Other Matters
Details of Child Trust Fund, Charities: substantial donors, Landfill tax and the Business Payment Support Service.
Source: Faust Loveday Bell
www.ukba.co.uk
Tuesday, 7 April 2009
Small employers urged - file online and get a £75 bonus
Small employers are being urged to file their 2008/09 Employer Annual Return online this year, and get a £75 tax-free payment in the process.
Employers with fewer than 50 employees can file on paper or online, but only those filing a valid online return will qualify for the £75 payment.
Those employers with 50 or more employees must file their 2008/09 return online, or face a penalty.
To file online, employers must first register with HMRC's "PAYE Online for Employers" service. It can take up to a week to get the Activation PIN after registering, so employers should not leave it until the last minute.
Agents, tax advisers or payroll bureaux can also file on behalf of employers. And small employers will still qualify for the £75 tax-free payment, even if an intermediary files online for them.
Employer Annual Returns are due by 19 May, or late-filing penalties will apply.
HMRC's Sue Williams said:
"We are accepting returns now, and would urge all employers to send them in as soon as they are ready, to avoid any last-minute rush."
Read more: http://nds.coi.gov.uk/content/detail.asp?NewsAreaID=2&ReleaseID=396367
www.ukba.co.uk
Employers with fewer than 50 employees can file on paper or online, but only those filing a valid online return will qualify for the £75 payment.
Those employers with 50 or more employees must file their 2008/09 return online, or face a penalty.
To file online, employers must first register with HMRC's "PAYE Online for Employers" service. It can take up to a week to get the Activation PIN after registering, so employers should not leave it until the last minute.
Agents, tax advisers or payroll bureaux can also file on behalf of employers. And small employers will still qualify for the £75 tax-free payment, even if an intermediary files online for them.
Employer Annual Returns are due by 19 May, or late-filing penalties will apply.
HMRC's Sue Williams said:
"We are accepting returns now, and would urge all employers to send them in as soon as they are ready, to avoid any last-minute rush."
Read more: http://nds.coi.gov.uk/content/detail.asp?NewsAreaID=2&ReleaseID=396367
www.ukba.co.uk
Friday, 6 March 2009
Tax doesn't have to be taxing
HMRC has released a series of online video guides to help small companies and start-ups with the complexities of the UK's tax system.
The guides, presented by Dan Snow, cover a variety of important tax topics - such as VAT, Corporation Tax, and PAYE.
The online guides also cover other areas such as the Construction Industry Scheme, importing and exporting, keeping accurate records, and things to consider when employing other people.
A new guide is also available alongside the videos - "Giving your business the best start with tax".
Dan Snow commented: "We've broken the information down into small video chunks, so that people can access exactly what they need to know. Hopefully this makes the new videos really useful for people and businesses."
Access them by clicking here.
The guides, presented by Dan Snow, cover a variety of important tax topics - such as VAT, Corporation Tax, and PAYE.
The online guides also cover other areas such as the Construction Industry Scheme, importing and exporting, keeping accurate records, and things to consider when employing other people.
A new guide is also available alongside the videos - "Giving your business the best start with tax".
Dan Snow commented: "We've broken the information down into small video chunks, so that people can access exactly what they need to know. Hopefully this makes the new videos really useful for people and businesses."
Access them by clicking here.
Friday, 23 January 2009
How to defer tax!
Some 20,000 businesses who contacted the Business Payment Support Service have between them arranged to defer tax of over £350m. We provide some practical pointers for using this new HMRC service.
A recent HMRC press release gave some information about the activities of the Business Payment Support Service (BPSS) since its launch in November 2008. By 14 January, 20,000 businesses who contacted the BPSS have delayed paying a total of more than £350m tax.
The BPSS is designed to help people who are struggling to pay their tax on time, by setting up suitable payment arrangements. The taxes it can deal with include income tax, corporation tax, PAYE, National Insurance contributions and VAT. The phone number is 0845 302 1435 and it is open seven days a week (8am to 8pm Monday to Friday, 8am to 4pm at weekends). Further information is available on the BPSS page of the HMRC website.
The following points may be useful:
Although the service is aimed primarily at businesses, it can be used by any taxpayer.
Once payment terms are agreed, HMRC will not charge late payment surcharges on payments included in the arrangement, although interest will continue to be charged where it applies.
The BPSS can only deal with new requests for time to pay, not with existing debts where there the taxpayer is already in contact with HMRC.
HMRC will have three main questions for callers:
• What do you need to pay at the end of the month?
• Why can't you pay it then?
• When will you be able to pay?
In the majority of cases, HMRC will be able to make a decision in around 10 minutes.
For larger liabilities or more complicated cases, HMRC may need to have a longer discussion or request more information.
HMRC ask callers to have the following information to hand:
• Your tax reference number.
• Details of the tax that you have, or will have, trouble paying.
• Basic details of your businesses income and outgoings.
The Tax Faculty also suggests that:
• Non-business taxpayers should have details of their income and outgoings.
• All callers should consider what sort of payment terms they could sensibly manage.
http://www.ukba.co.uk
A recent HMRC press release gave some information about the activities of the Business Payment Support Service (BPSS) since its launch in November 2008. By 14 January, 20,000 businesses who contacted the BPSS have delayed paying a total of more than £350m tax.
The BPSS is designed to help people who are struggling to pay their tax on time, by setting up suitable payment arrangements. The taxes it can deal with include income tax, corporation tax, PAYE, National Insurance contributions and VAT. The phone number is 0845 302 1435 and it is open seven days a week (8am to 8pm Monday to Friday, 8am to 4pm at weekends). Further information is available on the BPSS page of the HMRC website.
The following points may be useful:
Although the service is aimed primarily at businesses, it can be used by any taxpayer.
Once payment terms are agreed, HMRC will not charge late payment surcharges on payments included in the arrangement, although interest will continue to be charged where it applies.
The BPSS can only deal with new requests for time to pay, not with existing debts where there the taxpayer is already in contact with HMRC.
HMRC will have three main questions for callers:
• What do you need to pay at the end of the month?
• Why can't you pay it then?
• When will you be able to pay?
In the majority of cases, HMRC will be able to make a decision in around 10 minutes.
For larger liabilities or more complicated cases, HMRC may need to have a longer discussion or request more information.
HMRC ask callers to have the following information to hand:
• Your tax reference number.
• Details of the tax that you have, or will have, trouble paying.
• Basic details of your businesses income and outgoings.
The Tax Faculty also suggests that:
• Non-business taxpayers should have details of their income and outgoings.
• All callers should consider what sort of payment terms they could sensibly manage.
http://www.ukba.co.uk
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