Latest News
HMRC’s anticipated tax ‘amnesty’ for electricians was launched today, a month later than scheduled.
Under the new electricians' tax safe plan (ETSP) – originally scheduled to begin on 12 January – around 50,000 individuals will be invited by letter to come forward with details of previously undisclosed earnings.
For the purposes of the initiative, the Revenue will consider an electrician to be anyone who installs, maintains or tests electrical systems, equipment or appliances under stringent safety regulations.
Those who enter into the ETSP will be expected to pay no more t...
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In December 2011, the HMRC announced their intention to formally codify ESC C16 into the tax legislation. This will be effective from 1 March 2012, and the treatment will no longer be 'extra statutory'. This will affect clients who have more than £25,000 in surplus funds within the company, and decide to close the business.
The personal tax position upon cessation will be affected by this.
When you close down your company, any final dividend payments you make to yourself get taxed as dividend income in the normal way within your personal tax return. You can however apply ...
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This was on the cards as soon as rumours of a mass walkout began to circulate; however it is now official, HMRC have confirmed that, due to anticipated difficulty of contacting their call centres on 31 January, the following provisions will apply.
- The filing deadline will be extended 2 days to midnight on 2 February
- No penalties for late filing or payment of tax will be applicable until after 2 February
David Gauke, Exchequer Secretary to the Treasury, said: "This strike could have caused thousands of people to incur fines, so I am pleased that HMRC has taken t...
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From April 2012 HMRC will be able to collect Self Assessment debts of less than £3,000 by including them in the taxpayer’s PAYE code. This applies to both tax debts and tax credit overpayments.
Last year HMRC began writing to affected individuals so that they would have the opportunity to arrange to pay the outstanding amount by another method. However, HMRC will now start including outstanding debts in PAYE codes issued from January 2012. Such amounts will be included in the code issued at the start of the tax year but will not be added to the code in-year.
HMRC advises tha...
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The contractual disclosure facility (CDF) is a new opportunity that will come into effect at the end this month, when the Revenue will write to taxpayers suspected of tax fraud.
The individuals will be offered a CDF contract and provided with an acceptance letter, a denial letter, a disclosure form and a copy of COP9 - thereby providing three options: own up, rebuff the allegation, or do not reply.
Entering into a CDF contract will mean HMRC will not enter into criminal investigation. In return, the taxpayer will be obliged to:
reveal details of all tax deliberately evaded, with no e...
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The main focus of the recent Autumn statement was on the improved accessibility of funding for small businesses via the credit easing loan program.
Scratch beneath the surface, however, and there is another reason for prospective businesses in North Wales to be optimistic.
The Seed Enterprise Investment Scheme which was outlined in the statement; and confirmed in the draft Finance Bill overview published on 6 December by the Treasury is, potentially, a crucial source of new capital funding for start up or potential start up companies. In an area likeNorth Wales, which is a growing enterp...
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Recently published VAT report for anyone who is considering building a new residential property, or converting a non residential property into living accommodation.
The essence of the scheme is to put a DIY builder in the same position as if they had purchased a new property from a developer. As this would be a zero rated transaction for VAT, there is some scope to reclaim the VAT incurred on, for example, building materials.
Please contact Andrew Rainford at our offices for further information.
VAT report on construction
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Autumn statement and reaction
Andrew Rainford - Tax Manager
The press coverage of the recent Autumn Statement focused on the Euro crisis, and the perceived inaccuracy of the initial growth forecasts and public sector job cut estimates. And of course the failure of the Government to come anywhere close to its deficit reduction targets.
The ubiquitous beast that is 'The Deficit' is a largely misunderstood concept. Many incorrectly assume that the measurement of the national deficit is the amount of outstanding borrowings owed by the Government. This is possibly fuel...
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The deadline for submitting your personal, partnership or trust tax return is 31 January 2012. With less than one month to go it is now urgent to ensure your information has been submitted, or at least is with your advisor for processing.
The penalty for filing late this year is an immediate auto
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HMRC has announced that 2 of its new Taskforces will be assigned to North Wales in order to seek out fraudulent tax evaders. The areas under scrutiny are self-employed traders in the construction industry, and private landlords who own 3 or more properties. Individuals under suspicion could expect an in depth compliance review, which would include looking at accounting records, invoices and declarations for tax returns to ensure there has been no understatement.
Whilst honest businesses have nothing to fear, anyone caught out by the task forces can expect to be treated with very little symp...
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