On 19th February 2013, HM Revenue & Customs (HMRC) signed a Memorandum of Understanding with the Isle of Man (IOM) government. Under the terms of the Memorandum, HMRC will make a disclosure facility available to UK taxpayers. This gives UK taxpayers the opportunity to disclose any financial holdings in the IOM with fixed penalty rates. Those who fail to disclose and are subsequently investigated by HMRC face severe penalties.
Charity Newsletter 2013
A pilot programme of business records checks began in April 2011 and it ran until 17 February 2012, when HMRC announced it would conduct a review and follow with a fresh approach. HMRC has just launched a revised programme, claiming that there will be a much greater emphasis on education and support than in the original programme.
From today, HMRC will be sending letters to businesses it believes may be at risk of keeping inadequate records, advising the proprietors that HMRC will be contacting them by telephone to discuss their business records. By this means HMRC will “determine whether the customer could benefit from tailored educational support and whether a Business Records Checks visit is necessary”.
The Business Records Checks programme will be rolled-out across the UK, region by region, over a 14-week period. Businesses in Scotland will be included from14 January 2013.
If you receive any communication from HMRC about this, or indeed any other matter, you should immediately contact Richard Green or Tricia Halliday in our Tax Department for advice.
Duties & Liabilities of Trustees – interaction with OSCR 26-09-2012
In the latest of its’ Campaigns aimed at cornering tax evaders, HMRC is about to turn its attention to Direct Sellers, such as agents, consultants, representatives, distributors, or the like, who sell directly to customers without the need for a shop.
Direct selling may involve demonstrating a product in someone’s home (perhaps at a party), calling door to door, or even taking catalogue orders for friends or relatives and taking commission on the sales. It can amount to a full time business, supplementing income from another job, or even earning in a way that fits around caring commitments.
Those who have been earning commission and not paying tax are being given the opportunity to voluntarily put their tax affairs in order and pay what they owe, rather than face the prospect of direct action by HMRC. The campaign will start on 26 September 2012 and run until 28 February 2013.
For more information please contact Richard Green, or Tricia Halliday, in our Tax Department.
Yesterday, HMRC launched five more Taskforces bringing to 30, the number operating across the UK. Those now being brought under the microscope are:-
The Taskforces have been created as a direct result of the Government’s £917m spending review investment to tackle tax evasion, avoidance and fraud from 2011/12. HMRC aims to raise an additional £7 billion every year by 2014/15. They will visit traders to examine their records and carry out other investigations in attempts to counter tax evasion.
More information can be obtained by contacting Richard Green or Tricia Halliday in our Tax Department.
Real Time Information, or RTI as it’s more commonly known, is a new system that is being introduced by HMRC to improve the operation of Pay as You Earn (PAYE).
The PAYE system has remained pretty much unchanged since it was introduced in 1944. The reason it has remained unchanged is that for the majority of employers it has worked well. However, it is susceptible to fraud and this makes it difficult for HMRC to identify errors and help customers resolve problems quickly and efficiently.
Under the new RTI system, employers will be required to send data regarding PAYE, NIC and student loans, every time they pay their employees, rather than with their end of year tax return.
Most employers will be required to use RTI from April 2013 with all employers having to do so before October 2013. HMRC will notify all employers 4-6 weeks prior to the date they must begin making RTI submissions.
HMRC considers that over 80% of data quality problems are caused by incorrect information about an employee’s name, date of birth, or National Insurance Number. With the date for RTI fast approaching it is important to make sure that the information held for your employees is correct and can be matched against HMRC records. Records that don’t match could cause incorrect tax calculations and lead to HMRC compliance checks.
At Martin Aitken & Co we shall be working with our payroll clients over the coming months to make sure that their payroll data is correct and that they will benefit from a smooth transition to the new system. If you have any questions, or need any assistance, please contact Geoff Thompson in our Payroll Department (email@example.com).
Today, HM Revenue & Customs (HMRC) announced six new Taskforces in its drive to clamp down on tax evasion.
Taskforces have been used by HMRC since 2011 and already they have targeted Scottish landlords, restaurateurs, fast food outlets and scrap metal dealers, as well as others sectors in different parts of the UK.
The six new Taskforces will target market traders in London, taxi firms in Yorkshire and East Midlands, landlords in East Anglia, London, Yorkshire and the North East of England and restaurateurs in the Midlands.
Taskforces are specialist teams that undertake “intensive bursts of compliance” activity in specific high risk trade sectors and locations in the UK. The teams will visit traders to examine their records and carry out other investigations.
HMRC launched 12 Taskforces in 2011/12. The 6 just announced form part of a total of 30 planned for launching in 2012/13.
If you are affected by this announcement, or have any other concern about tax, please contact Richard Green or Tricia Halliday in our Tax Department.