31 October 2011.
HMRC's Business Record Checks step up a gear
HMRC have released some early findings in respect of their ongoing Business Record Check pilot, confirming that 44% of enterprises had issues with their record keeping and 12% had seriously inadequate records.
During this initial stage HMRC confirmed it would only issue penalties in the most extreme cases. In the longer term it plans to impose penalties of up to £3,000 for serious inadequacies.
The business records check programme stepped up a gear from mid September, with the number of staff on the project rising from 30 to 120 and HMRC plan to conduct 12,000 checks by the end March 2012.
Keeping adequate records has always been vital and clearly now with the prospect of financial penalties for failure it even more important. Please contact Key Accounting Services for more infomation on maitaining adequate business records.
18 September 2011.
The chief secretary to the Treasury, Danny Alexander, wants to recruit more than 1,000 new HMRC tax inspectors to form a team dedicated to ensuring the richest members of society pay their taxes in full.
He is keen to stop well off individuals having access to schemes that limit their tax liability and to take a harder line with people who use illegal tax evasion techniques.
Mr Alexander promised that there will be new campaigns launched by HMRC to encourage people in particular sectors to pay their fair share.
He said that HMRC will be taking additional prosecutions against tax evasion where we identify that illegal activity; they will be investigating when measures are set up that are designed to avoid tax and close loopholes if that is necessary.
1 September 2011.
HMRC Real time review of Business Records.
HMRC have a new campaign to review current business records. Officers from HMRC will visit you and carry out a check of your record keeping systems over, typically, a 3 to 4 hour period.
The HMRC Officer will be reviewing what systems are in place to ensure accurate business records are maintained and ensuring that you have safely retained previous year's records for the stipulated time.
To date HMRC have reported, via our professional body, that they have found, in general, poor sales invoicing, no record of business mileage, no record of cash transactions and a lack of knowledge of what does and does not require recording and retention.
HMRC can make a return visit after 3 months to ensure that the record keeping has improved and can charge a penalty (fine) for not setting up. maintaining and retaining accurate business records.
Not sure if your business records fit the bill? Contact us for help.
11 July 2011.
Do you need to register for VAT?
VAT have an Initiative campaign. Between now and 30 September 2011 businesses can telll HMRC that they should be registered for VAT. The campaign is aimed at businesses that:
- have already passed, or are expecting to pass within the next 30 days, the current VAT threshold of £73,000
- have passed the VAT threshold in a previous 12 month period but did not register for VAT
- want to take advantage of a reduced penalty
You must register for VAT if any of the following applies:
- your VAT taxable turnover for the previous 12 months is more than £73,000 (the current VAT registration threshold)
- you think your VAT taxable turnover will exceed the threshold in the next 30 days
- you exceeded a VAT threshold at an earlier point in time and have not registered for VAT
- you take over a VAT-registered business as a going concern
Not registering for VAT when you have exceeded the threshold may incure a penalty charges in addition to the VAT due.
If you tell HMRC voluntarily under the VAT Initiative before 30 September 2011 you may get a reduced penalty
- contact Key Accounting Services for more information.
16 June 2011.
Don't be caught by the latest surge of fake ‘phishing’ emails sent out by fraudsters.
The email informs the recipient they are due a tax rebate, and provides a click-through link to a cloned replica of the HMRC website. The recipient is asked to provide their credit or debit card details. Fraudsters then try to take money from the account using the details provided. Victims risk having their bank accounts emptied and their personal details sold on to other organised criminal gangs.
13 June 2011.
HMRC's latest campaign targets VAT defaulters, private tutors and e-marketplaces - if you trade on E-Bay HMRC will be using cutting-edge tools such as “web robot” software to search the internet and find targeted information. Using the software, the department can pinpoint more accurately people who have failed to pay the right tax. The “web robot”, used with the department’s Connect computer system, also helps find people who are trading without telling HMRC.
12 May 2011.
HM Revenue & Customs (HMRC) today announced a new task forces to tackle, what they referred to as 'tax dodgers'. These specialist teams intend to undertake intensive bursts of compliance activity in high risk trade sectors and locations across the UK. It seems we may therefore see a sharp increase in HMRC investigation work.
30 March 2011.
HM Revenue & Customs will soon issue 2010-11 Self Assessment tax returns. A new penalty framework is being introduced and it will significantly increase the penalties (fines) for those who file and pay late. A tax return filed six months late could attract a penalty of £1,300. The most important change is that if a tax return is late, previously, if no liability to tax arose no penalty was charged. In future a penalty will be charged on all late returns regardless of the tax due, including those with no liability.