EJBC Chartered Accountants

HMRC issued a news release on Friday 20 May 2011 announcing that it is to introduce a campaign targeted at VAT rule breakers.
The aim is to focus on individuals and businesses who are trading above the VAT threshold (currently £73,000), but who have not yet registered for VAT. It is not clear at the moment how HMRC will implement the scheme or how they will chose to investigate those individuals and businesses.
There are late filing penalties for not registering your business on time for vat, and there are also circumstances where individuals can exceed the vat threshold for a short period of time and avoid registration.

If you are at all concerned that this may affect you, please let us know and we can talk you through the process.

Emma Thomas
emma@ejbc.co.uk

HMRC are no longer sending out a paper Budget Pack, so as an employer, if you wish to keep informed of changes to payroll legislation, we recommend that you subscribe to the ‘employer email alert’. Details of how to register for this service can be found at:

http://www.hmrc.gov.uk/paye/forms-publications/register.htm

Emma Thomas emma@ejbc.co.uk

Earlier this year, HMRC launched what it has named the Plumbers Tax Safe Plan, full details of which can be found at http://www.hmrc.gov.uk/trades-disclosure/index.htm

Reports are suggesting that up to 50,000 plumbers, gas fitters and heating engineers will be receiving a letter from HMRC, giving them to the opportunity to declare untaxed income, which would incur a reduced rate penalty.

HMRC has stated that not everyone who receives a letter actually owes tax and they that they will not be in a position to send these letters to everyone who could be affected by the scheme.

Under the plan, plumbers, gas fitters, heating engineers and members of associated trades who owe tax, which they have not yet declared, can come forward anytime up to 31 May to tell HMRC they want to take part. If they make a full disclosure, most face a low penalty rate of 10%, with a maximum of 20%. Once they come forward, they have until 31 August to make their disclosure and arrange for payment.

After that date, using information pulled together from different sources, HMRC will investigate those who have failed to come forward. Substantial penalties or even criminal prosecution could follow.

If you receive one of these letters, or would like to take part in the plan we would be interested in hearing from you.

Emma Thomas emma@ejbc.co.uk

As with every new tax year, we are once again receiving reports of new repayment scams, so we are taking this opportunity to remind clients that HMRC will never send notifications of a tax rebate by email, nor ask them to disclose personal or payment information.

If you do receive one of these emails, please report the scam to HMRC at: phishing@hmrc.gsi.gov.uk as soon as possible to help identify fraudsters.

Further HMRC guidance is accessible at HM Revenue & Customs Security advice: http://www.hmrc.gov.uk/security/index.htm