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The HMRC has announced a new disclosure facility for medical practitioners to declare unpaid tax |
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Friday, 15 January 2010 13:47 |
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A typical example might arise for a medical consultant. Early in his career another organisation might have deducted basic rate tax before making payment to him. The consultant has now become a higher rate taxpayer but the minor sources of income should have been declared in full so that the additional higher rate tax could be paid. As a result too little tax has been paid each year. Another illustrative example might arise where general practitioners claim a generous estimate of business mileage in respect of motoring but fail to keep a mileage log or records to support their claim with the percentage business mileage having become excessive since the reduction in ‘out of office’ calls and home visits of recent years. The failure to keep records is a failure to take reasonable care and under the new penalty regime such a mistake could make the doctor liable to a penalty of up to 30% for the mistake in over-claiming expenses. It is known that HMRC has already obtained details from BUPA, Sun Life, and other healthcare providers and payers about doctors who have not declared some or all of their income. These include private consultancy fees, ash cash for signing cremation certificates, reports, passport fees and other items of sundry income. More detail about the ‘tax health plan’ can be obtained by clicking on the following link http://www.hmrc.gov.uk/tax-health-plan/index.htm. In broad outline, the tax health plan will operate from 11 January 2010 to 31 March 2010 giving doctors the opportunity to notify HMRC of their intention to take advantage of the plan. The doctor then has until 30 June to make a disclosure and pay the tax, plus the interest due, plus the certainty of a fixed penalty of 10% in all but the most heinous cases. There can be little doubt that HMRC has the authority to vary penalties. This was established in the National Federation of Small Business case which confirmed in its decision that HMRC had the authority to vary penalties at HMRC’s discretion. But this leaves open the question as to whether it is right that HMRC should offer this facility to, for example, medical practitioners but deny an identical facility to, for example, fish and chip shops which are known to be the subject of a campaign to encourage full compliance. The tight deadlines are an opportunity for those in the medical profession, who have in the past made errors, to become compliant and bring their tax affairs up to date. If you are at all concerned about the figures for income or expenses shown on your Tax Returns, or wish to know more about our optional Tax Enquiry Insurance Scheme then please speak with your usual contact at MACo, or Richard Green in our Tax Department. |
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Businesses reminded of VAT filing changes |
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Thursday, 17 December 2009 10:35 |
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VAT-registered businesses are being urged to take note of the forthcoming changes to the rules on filing returns. From 1 April 2010, businesses with an annual turnover of more than £100,000 (excluding VAT) will need to have their VAT returns filed online and payments made electronically, for accounting periods beginning on or after that date. Meanwhile, businesses with an effective VAT registration date on or after 1 April 2010 will need to have returns filed and payments made online, regardless of their turnover. The remaining VAT registered businesses may continue to have paper returns filed for the time being, but the situation is set to be reviewed by 2012. HM Revenue & Customs has confirmed it will be mailing formal letters in February to all existing companies affected by the changes. HMRC’s Stephen Banyard said: ‘If your turnover is £100,000 or more, and you’re not already filing your VAT return online, sign-up now for VAT online services – that way, you’ll avoid a last-minute rush, and be able to enjoy the benefits of online filing sooner rather than later.’ Penalties for failing to make an electronic return will be applied to periods ending on or after 31 March 2011. We can help with all your tax planning needs, including dealing with your tax returns on your behalf – please contact us for information and assistance. |
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Court rules in favour of banks on overdraft charges |
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Wednesday, 25 November 2009 11:24 |
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The Supreme Court has ruled in favour of the UK’s high street banks in an ongoing row concerning overdraft charges. Seven major banks and a building society had challenged previous court rulings which allowed the Office of Fair Trading (OFT) to investigate the ‘fairness’ of the overdraft fees levied on customers. Today the President of the Supreme Court, Lord Phillips, overturned these earlier rulings after the banks argued that they would receive a ‘deluge of litigation’ if the OFT was allowed to investigate the charges. All new claims against banks were put on hold in July 2007 while a test case was carried out to determine whether the charges were legal. The Court’s latest decision will come as a blow to millions of consumers who were hoping to recoup billions of pounds in refunds. However, Lord Phillips added that the landmark verdict would ‘not close the door on the OFT's investigations’ and may not resolve the ‘myriad cases’ that are currently suspended. |
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Dentist Study Day 4th December 2009 |
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Added by Iain Anderson
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Tuesday, 17 November 2009 11:45 |
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Martin Aitken & Co are pleased to be attending the Faculty of General Dental Practice (UK) Scotland’s annual Dentist Study Day at the Royal Concert Hall in Glasgow on the 4th of December 2009. We look forward to meeting many of our clients there and assisting dentists, hygienists, and associates with any Tax, Accounts or related questions. UPDATE We would like to than all those delegates who stopped by our stand on the 4th December, taking time to talk to us and also for entering our raffle. The winning tickets have been drawn and the winners contacted by letter. |
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VAT reduction extended for New Year’s revellers |
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Added by Iain Anderson
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Thursday, 05 November 2009 08:28 |
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Pubs, restaurants and clubs will be able to charge VAT at the reduced rate until 6am on New Year’s Day, the Government has announced. In December 2008, the Chancellor cut VAT from 17.5% to 15% in a bid to boost consumer spending during the recession. The higher rate is due to be reinstated on 1 January 2010. However, Treasury minister Stephen Timms has confirmed that licensees will not have to implement the rate change at midnight as this could cause confusion and discontent amongst New Year’s drinkers. Instead, prices will change six hours later at 6am. Speaking in the House of Commons, Liberal Democrat MP, Greg Mulholland, urged the Government to consider the timing of the change and the impact it could have on pubs, especially when combined with the ‘ill-judged and damaging’ recent rise in beer. In response, Mr Timms confirmed that the lower rate would be extended to drinkers until the morning of 1 January. ‘That will be very welcome news, I think, to institutions like those you are concerned about,’ he added. |
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