Small businesses used to plug tax gap

Small businesses used to plug tax gap

HM Revenue & Customs (HMRC) has been accused of using small and medium-sized businesses to plug the UK’s tax gap, following a report which showed an additional £468 million was generated in tax revenue by SMEs in 2016. The figure, obtained via a Freedom of Information Request, follows on from HMRC’s announcement at the end of 2015 that small firms accounted for over half of Read more…

Making Tax Digital will require businesses to use “designated software packages”

Making Tax Digital will require businesses to use “designated software packages”

The Financial Secretary to the Treasury, David Gauke MP, has confirmed in a letter to the Treasury Select Committee that HM Revenue & Customs plans to require businesses to make quarterly tax returns using “designated software packages” as part of its Making Tax Digital (MTD) initiative. Previously, it was understood that businesses would be able to use their own choice of software package for their Read more…

Independent watchdog questions quarterly business tax updates

Independent watchdog questions quarterly business tax updates

The Administrative Burdens Advisory Board (ABAB) has said it has serious concerns about the government’s proposals to introduce quarterly reporting, similar to tax returns, for businesses. The body, which provides independent oversight of HM Revenue & Customs (HMRC) policies, said the quarterly updates will add an extra burden to businesses due to increased record keeping and compliance costs. The move to include quarterly reporting is Read more…

Personal tax regime experiences shake up in the Budget

Personal tax regime experiences shake up in the Budget

 The Chancellor used his latest Budget announcement to deliver a raft of changes to the personal tax regime. George Osborne said that his latest Budget would be a statement for the next generation and he delivered on this promise by introducing a new Lifetime ISA. The announcement of a Lifetime ISA could prove a boon for savers aged 18-40 and will see the government contribute Read more…

Government seeks out tax-efficient remuneration

Government seeks out tax-efficient remuneration

The move to tax loans to participators at a higher rate was not announced by the Chancellor in his main speech to Parliament. However, further investigation of the Budget documents has revealed that from this month, the rate of tax payable by a company on any balances lent to an individual participator or related unincorporated business will increase from 25 per cent to 32.5 per Read more…

MPs say the UK is not ready for digital tax

MPs say the UK is not ready for digital tax

During the Chancellor’s 2015 Autumn Statement, the Government announced its plans to reform tax legislation to require small businesses, the self-employed and landlords to update HMRC quarterly, rather than completing an annual tax return. The Government intends for quarterly updates to be initially introduced from 2018 and phased in fully by 2020. MPs criticised the 2020 target as premature and motivated by cost cutting rather Read more…

HMRC turns attention to ‘affluent’ taxpayers

HMRC turns attention to ‘affluent’ taxpayers

HM Revenue & Customs (HMRC) has announced that it has doubled the number of inspectors trawling through the tax files of individuals earning £150,000 or more. Until recently, the taxman was mainly investigating ‘high net worth’ individuals – those earning £1 million or more – but now HMRC’s attention has moved to those a little further down the income scale. The so-called ‘Affluent Unit’, which Read more…

Tax That – Buyer beware the Tax avoidance scheme

Tax That – Buyer beware the Tax avoidance scheme

So today we’re all hearing that Gary Barlow and two of his friends from Take That may have to repay a great deal of tax.  We have also been served with a reminder that tax avoidance of the sort that they took part is not in itself illegal, but that tax evasion is the real crime. Notice that I said “may have to repay this Read more…

Unpaid Tax: An Unfair Pursuit?

Unpaid Tax: An Unfair Pursuit?

Today’s revelation in the press was that Her Majesty’s Revenue and Customs (HMRC) want to go straight to our bank account to collect unpaid tax. Of course we should all pay our tax on time; and in actual fact many of us as employees have no choice in the matter as the tax is deducted from our wages before we receive it. The surprise might be for Read more…

Taxpayers warned on NIC debts

Taxpayers warned on NIC debts

People with unpaid national insurance contributions (NICs) have been warned that private debt collectors could be used to recover the money they owe HM Revenue & Customs (HMRC). People paying tax through Pay As You Earn (PAYE) as an employee or who receive a taxable, UK-based private pension may have received a P2 annual coding notice for the 2014-15 tax year, which sets out their Read more…