With two weeks to go until the 31st January Self Assessment deadline, HMRC recaps the strangest and most imaginative excuses and expense claims received over the past 10 years.

Every year, HMRC receives some imaginative excuses and expense claims following the 31st January Self Assessment deadline.

To wrap up the decade, and with 2 weeks to the deadline, HMRC has highlighted ten of the weirdest and wonderful excuses they have received from customers who missed the deadline over the last decade.

The top 10 most bizarre excuses and questionable expenses claims for items, in reverse order, are:

• Caravan rental for the Easter weekend
• I was up a mountain in Wales, and couldn’t find a post box or get an internet signal
• My dog ate the post … again
• claiming £4.50 for sausage and chips meal expenses for 250 days
• My hamster ate my post
• I’ve been cruising round the world in my yacht and only picking up post when I’m on dry land
• A music subscription so I can listen to music while I work
• Pet food for a Shih Tzu ‘guard dog’
• A DJ was too busy with a party lifestyle – spinning the deck….in a bowls club
• My mother-in-law is a witch and put a curse on me

All the excuses and expenses listed above were unsuccessful.

Angela MacDonald, HMRC Director General of Customer Services, said: “Each year, we try to make it as easy and simple as possible for our customers to complete their tax returns and the majority make the effort to do theirs’ right and on time. But we still come across some unusual excuses and expenses, which range from problems with a mother-in-law to yachts set on fire.

“We always offer help to those who have a genuine excuse for not submitting their return on time. It is unfair to the majority of honest taxpayers when others make bogus claims.

“If you think you might miss the 31 January deadline, get in touch with us now – the earlier we’re contacted, the more we can help.”

The deadline for sending Self Assessment tax returns for the 2018 to 2019 tax year to HMRC and paying any tax owed is 31 January 2020.

The smashing of international criminal gangs, large money laundering seizures and fake investment schemes all feature in HM Revenue and Customs’ top criminal cases of 2019.

HMRC’s fraud investigations have led to more than 600 individuals being convicted for their part in tax crimes and commenced new criminal investigations into more than 610 individuals during the last 12 months. The Fraud Investigation Service continues to bring in around £5 billion a year through civil and criminal investigations.

This year’s top criminal cases include:

• 2 wealthy professionals who attempted to steal more than £60 million through a fraudulent tax avoidance scheme which claimed to invest in HIV research and conservation, and were jailed for a total of 14 and a half years
• A Berkshire-based gang that stole £34 million in VAT and laundered £87 million, the proceeds from selling illicit alcohol through bank accounts in Britain, Cyprus, Hong Kong, Dubai and other countries – were jailed for more than 46 years
• a fugitive £17 million tax fraudster who is finally behind bars after he was tracked down to his Prague hideaway and brought back to the UK to serve his 8-year sentence
• five people, including the former owners of a Sussex petrol station, who were sentenced for distributing and selling an estimated 4.8 million litres of illicit fuel to unsuspecting motorists, including haulage companies across the South East
• the jailing of a former Top Gear mechanic who helped father and son tax cheats escape from the UK via ferry and Eurotunnel prior to sentencing for a £1 million VAT fraud
• payback time for 5 wealthy tax fraudsters who were involved in one of the UK’s biggest tax frauds
• an apparently jobless Londoner who enjoyed a sociable lifestyle of golf and exotic holidays by dodging tax on smuggled tobacco has been jailed
• a charity treasurer who tried to steal more than £330,000 in a Gift Aid repayment fraud and spent the money on lavish cruise holidays
• our work with Interpol to take apart a pan-European crime gang involved in cigarette trafficking, drug smuggling and money laundering

As well as successful prosecutions, HMRC issued a record £7.8 million fine to a money service business in West London for breaching the money laundering regulations. There was a major seizure in Northern Ireland, worth around £2 million in lost duty and taxes, by the Paramilitary Crime Task Force (of which HMRC is a part) targeting the criminal activities of paramilitary organised crime groups.

Simon York, Director of the Fraud Investigation Service, said: “The majority of people pay their taxes but there remains a hard core who have zero interest in playing by the rules. These prosecutions clearly show that we’ll relentlessly pursue those criminals who would try and cheat honest taxpayers by stealing money destined for vital public services.

“It means we’re increasingly taking on ever more complex frauds and well-resourced opponents, including tackling organised criminals who would otherwise undermine our economy and harm our communities.”

HM Revenue and Customs is warning millions of Self Assessment customers to be aware of fraudsters in the run-up to the January 31st deadline.

Over the last year, HMRC received nearly 900,000 reports from the public about suspicious HMRC contact – phone calls, texts or emails. More than 100,000 of these were phone scams, while over 620,000 reports from the public were about bogus tax rebates.

Some of the most common techniques fraudsters use include phoning taxpayers offering a fake tax refund or pretending to be HMRC by texting or emailing a link which will take customers to a false page, where their bank details and money will be stolen. Fraudsters are also known to threaten victims with arrest or imprisonment if a bogus tax bill is not paid immediately.

HMRC operates a dedicated Customer Protection team to identify and close down scams but is advising customers to recognise the signs to avoid becoming victims themselves. Genuine organisations like HMRC and banks will never contact customers asking for their PIN, password or bank details. Customers should never give out private information, reply to text messages, download attachments or click on links in texts or emails which they are not expecting.

Customers are urged to take action by forwarding details of suspicious calls or emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599. Customers who have suffered financial loss should contact Action Fraud on 0300 123 2040, or use their online fraud reporting tool.

Customers can find out more information on GOV.UK on how to avoid and report scams and recognise genuine HMRC contact. If customers think they have received an HMRC-related phishing email or text message, they can check it against examples on GOV.UK.

Tax is automatically deducted from most UK taxpayers’ wages, pensions or savings. Where tax is not automatically deducted, or when people or businesses have earned additional untaxed income, they are required to complete a Self Assessment tax return each year.

People need to complete a tax return if they:

• earned more than £2,500 from renting out property
• or their partner received Child Benefit and either of them had an annual income of more than £50,000
• received more than £2,500 in other untaxed income, for example from tips or commission
• are self-employed sole traders
• are employees claiming expenses in excess of £2,500
• have an annual income over £100,000
• earned income from abroad that they need to pay tax on

Further information:

• Self Assessment guidance is available on GOV.UK
• If customers are completing their Self Assessment online for the first time, they need to register for Self Assessment Online. It can take a few days for the registration to arrive in the post, so it’s important that customers do it as soon as possible. They should contact HMRC for support if they’re concerned about missing the deadline.
• Be aware of copycat websites and phishing scams – always type in the full online address www.gov.uk/hmrc to obtain the correct link to file your Self Assessment return online securely and free of charge.
• Customers can also register for HMRC’s help and support email service online or by going to GOV.UK and searching ‘HMRC videos, webinars and email alerts’.

Departments across government are holding events to help your business get ready for Brexit.

After Brexit there will be changes that affect businesses and hauliers across the UK.

Make sure you are prepared for them, particularly if your business:

• imports goods
• exports goods
• receives personal data
• exports services

Local business readiness events
The Department for Business held a series of free face-to-face Business Readiness Events across the UK, to help businesses find out what actions they need to take to prepare for Brexit. The events included support and advice stands, with in-depth sessions led by subject matter experts from across government, including Defra, HMRC, Home Office and DCMS.

More information could be found about a range of issues, including:

• the importing and exporting of goods and services
• transferring data
• employing EU citizens

The Brexit Business Readiness Events events have now ended but if you were unable to attend one, you can view the Government’s online event which features recordings of the sessions held at the events.

Helping hauliers prepare for Brexit
The Department for Transport is setting up information pop-up stands across the UK and Europe to help hauliers and businesses prepare for Brexit, so that goods can continue to flow smoothly through ports.

The pop-ups will be located at ports, service stations and on ferries to provide easily accessible advice, helping hauliers understand the documentation they need for themselves, their vehicles and their goods after Brexit. All stands will be staffed by multilingual advisors. Further advice for hauliers is available on GOV.UK.

Brexit preparedness workshops for businesses that export
Businesses will leave these workshops with a personalised action plan for Brexit preparedness. The workshops will provide advice on:

• impact to supply chains
• changes to regulations and contracts
• where to find tariff information
• what businesses might need to speak to customers and employees about

Find your nearest event and sign up: please note that locations are still being added.

HMRC webinars to help customers get ready for Brexit
HMRC is running Get Ready for Brexit webinars during October, which provide an overview of everything UK businesses involved in the movement of goods between the EU and the UK need to know to keep goods moving after 31 October.

Sign up for one of the webinars at Get Ready for Brexit.

For those unable to make any of the sessions, the webinar has been recorded on GOV.UK.

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HMRC is stepping up efforts to ensure businesses are ready to trade post-Brexit by automatically enrolling companies in an important customs system and doubling the numbers registered, the Chancellor has announced.

More than 88,000 VAT registered companies across the UK will be allocated an Economic Operator Registration and Identification (EORI) number in the next two weeks in order to keep trading with customers and suppliers in the EU after the UK has left.

72,000 companies have already registered for EORI numbers. With Brexit preparations accelerated under the new government, ministers are taking decisive action to speed up the rollout of the scheme to help ensure the smooth transit of goods.

EORI numbers are a unique ID number allocated to businesses that enables them to be identified by Customs authorities when doing business with other traders.

If businesses do not have an EORI number post-Brexit, they will be unable to continue to trade with EU Member States.

Letters informing businesses of automatically allocated EORI numbers will start arriving today as the Government steps up efforts to ensure the UK is ready for Brexit.

Chancellor of the Exchequer Sajid Javid said: “As the government accelerates its preparation to leave the EU on 31st October, it’s right businesses are prepared too.

“There can be no time for delay which is why HMRC has allocated thousands of businesses with a trading number to ensure they can continue to trade their goods through Europe from day one. This will help ease the flow of goods at border points and support businesses to trade and grow.”

The Chancellor has been determined to grip Brexit preparations, allocating an extra £2.1 billion for government departments last month to prepare for no deal, doubling Brexit funding for this year.

As part of the cash injection, border and customs operations will receive an additional £344m to be ready for Brexit, including by hiring more border officers, doubling the support available for customs agents, and improving transport infrastructure around ports.

Additional information:

If a business is not VAT-registered, it will still need to register for an EORI number. Information on how to register can be found here

Getting an EORI number is one of the steps that businesses need to action urgently to be prepared for leaving the EU

After getting an EORI number, businesses will need to decide whether to complete customs declarations themselves, or employ a customs agent to do this. As part of the £2.1bn announced on 31 July, we are doubling the support made available for customs agents to train new staff or invest in better IT so businesses can get the support they need to complete customs declarations. If employing a customs agent, businesses will need to supply their EORI number. Information to inform this decision can be found here

Traders also need to decide whether to apply for Transitional Simplified Procedures to make it easier to import goods from the EU. Find out how to register here

Letters to businesses containing their assigned EORI number will arrive within two weeks

If businesses have been issued a UK EORI number by HMRC and then apply online, they will receive a message to say that they already have one

HMRC advises businesses to contact HMRC if they are unsure. HMRC will be able to confirm whether a number has been assigned

Working parents could be entitled to Tax-Free Childcare worth up to £2,000 per child per year to pay towards regulated holiday clubs during the school holidays.

Parents can choose from more than 68,000 childcare providers that have signed up, including school and summer camps across the country.

If parents pay into their Tax-Free Childcare account regularly, they can ‘save up’ their money and use it for childcare during school holidays. For every £8 that families pay in, the government will make a top-up payment of an additional £2. The money saved can be put towards a whole range of other childcare options, including before and after school care when term time starts again in September.

The scheme is open to working parents, including the self-employed, who earn between the minimum wage and £100,000 per year and have children aged 0-11 years old.

Liz Truss, Chief Secretary to the Treasury, said: “We understand making arrangements for summer childcare at this time of year is important and can be a stressful time for parents.

“Tax-Free Childcare makes things easier, putting more money in the pockets of parents and supporting as many families as possible to secure high-quality, affordable childcare.

“Parents should visit the Childcare Choices website and take advantage of the range of offers to help balance their work and family lives while saving money.

You can find out more and apply through the Childcare Choices website, www.childcarechoices.gov.uk. It includes a Childcare Calculator that compares all the government’s childcare offers to check what works best for individual families.

How Tax-Free Childcare works

Working parents can apply, through the childcare service, to open an online childcare account. The scheme is available for children under the age of 12, or under the age of 17 for children with disabilities.

If you or your partner have an ‘adjusted net income’ over £100,000 in the current tax year, you will not be eligible. This includes any bonuses you expect to get.

For every £8 that families pay in, the government will make a top-up payment of an additional £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). This top-up is added instantly and parents can then send payments directly to their childcare providers. The maximum government top-up is £500 per quarter for each child, or £1,000 if the child is disabled.

All registered childcare providers – whether nannies, nurseries, childminders or after-school clubs – can sign up online now to receive parents’ payments through Tax-Free Childcare.

Parents need to sign back in every three months and confirm their details are up-to-date, to keep getting government top-ups.

We are looking for a senior member to join our team.

The candidate must have experience of working in an accounting practice and be qualified to at least AAT level or equivalent.

Candidates must have:

• An excellent knowledge of Xero and Sage, other bookkeeping programs would be beneficial.
• A knowledge of Iris (our practice software) would be preferential but not essential.
• Knowledge of production of accounts for sole traders, limited companies & partnerships and the PAYE system including CIS, would be beneficial.

The role will include client contact, being able to advise clients and being approachable and personable.

Salary will depend on applicant’s qualifications, experience and knowledge.

Please forward applications to John Pache at pachej@barterdurgan.co.uk

From today the government’s major Making Tax Digital programme becomes law for over one million VAT-registered businesses earning more than £85,000.

The new rules, first announced in 2015, will mean most businesses above the VAT threshold will need to keep their records digitally and submit their VATreturn using MTD-compatible software for VAT periods starting on or after 1 April.

MTD will make it easier for businesses to get their tax right first time. HM Revenue and Customs (HMRC) has been urging businesses to get ready and has already written to every business affected with information on what they need to do.

Almost 100,000 businesses have already signed up to the new service. More than 4,000 businesses are now signing up to MTD every day to experience a more integrated approach to business and tax.

HMRC knows businesses will require time to become familiar with the new requirements. During the first year of VAT mandation, HMRC will take a light touch approach to penalties by not issuing filing or record keeping penalties where businesses are doing their best to comply with MTD.

Mel Stride MP, Financial Secretary to the Treasury, said: “Delivering Making Tax Digital for VAT is the first step toward our ambition to create one of the most digitally advanced tax authorities in the world. The rules that come in from today will give businesses more control over their finances, allowing them to spend their time focusing on innovation, growth and the creation of jobs.”

Theresa Middleton, Director of the Making Tax Digital for Business Programme, said: “Tens of thousands of businesses joined our pilot over the last 6 months and have helped us to test and improve the live service ensuring we have the right support in place to help people transition.

“Now is the time for those businesses affected by MTD who haven’t done so already to begin preparing to switch over and start experiencing the benefits MTD has to offer. You don’t necessarily need to sign up from day one, but you do need to make sure you’re keeping your records digitally for your next VAT period which starts on or after 1 April.”

Emma Jones, founder of small business support network Enterprise Nation, said: “Encouraging small firms to adopt more digital functionality offers real benefits. For example, having accurate and timely financial information to hand helps companies make better, more informed decisions and using digital tools more broadly, including time management, helps businesses increase productivity.In the longer term we feel Making Tax Digital and the digitisation of tax records will present significant advantages to business.”

What businesses need to do now

If you have not prepared, do not panic. 1 April is not a ‘cliff edge’ for sign-ups – the first returns under the new system for the majority of businesses, which file VAT quarterly, won’t be due until August at the earliest.

Accountants or other tax representatives will already be aware of MTD and will advise businesses how and when they need to make changes to be ready for the new service.

Those already using software will simply need to ensure it is MTD-compatible then sign up to the new service and authorise their software for MTD.

For those who are not using an accountant or don’t currently use software, it is quick and easy to sign up and there is lots of information available to help them prepare, including about what software is available.

You should:

• take steps to find out if your business is affected by the Making Tax Digital changes and what you need to do if it is. Most businesses above the VATthreshold have to start keeping their records digitally and sending their VAT return to HMRC direct from their software for VAT periods starting on or after 1 April
• talk to your accountant or agent – if you use one to manage your VATaffairs – about how they are making returns MTD-compliant
• speak to your software provider if you already use software to ensure it will be compatible

Those businesses that are either not represented by an accountant and/or do not already use software will need to select software to use and sign up to MTD, then authorise their new software for MTD. Our GOV.UK webpages provide information on a wide variety of products, from free software for businesses with more straightforward tax affairs, to increasingly sophisticated paid solutions. There are also products that can be used in conjunction with a spreadsheet for those businesses that don’t want to change their underlying record keeping system.

Households with a landline number should be vigilant of phone calls from fraudsters pretending to be the tax authority, warns HM Revenue and Customs.

As HMRC has increasingly cracked down on email and SMS phishing, a rising number of criminals are turning to the traditional method of cold-calling publicly available phone numbers to steal money from taxpayers. Often these calls are to landline numbers.

According to Ofcom, nearly 26 million homes have a landline, many of which could be at risk from scams, especially if they are not ex-directory.

Phone scams often target the elderly and vulnerable using HMRC’s brand as it is well known and adds credibility to a fraudster’s call.

HMRC received more than 60,000 reports of phone scams in 6 months up to January 2019. This is an increase of 360% compared to the 6 months before this.

Financial Secretary to the Treasury, Mel Stride MP, said: “We have taken major steps to crackdown on text and email phishing scams leaving fraudsters no choice but to try and con taxpayers over the phone.

“If you receive a suspicious call to your landline from someone purporting to be from HMRC which threatens legal action, to put you in jail, or payment using vouchers: hang up and report it to HMRC who can work to take them off the network.”

Head of Action Fraud, Pauline Smith, said: “Fraudsters will call your landline claiming to be from reputable organisations such as HMRC. Contact like this is designed to convince you to hand over valuable personal details or your money.

“Don’t assume anyone who calls you is who they say they are. If a person calls and asks you to make a payment, log in to an online account or offers you a deal, be cautious and seek advice.”

The tax authority will only ever call you asking for payment on a debt that you are already aware of, either having received a letter about it, or after you’ve told us you owe some tax, for example through a Self Assessment return.

During the last 12 months, HMRC has worked with the phone networks and Ofcom to close nearly 450 lines being used by fraudsters using boiler room tactics to steal money.

If anyone is ever in doubt about who they are speaking to, HMRC advises you end the call and contact the department using one of the numbers or online services available from GOV.UK

If you know someone who has a landline, particularly those who may need protecting such as vulnerable relatives and neighbours, the HMRC’s advice is:

• Recognise the signs – genuine organisations like banks and HMRC will never contact you out of the blue to ask for your PIN, password or bank details
• Stay safe – don’t give out private information, reply to text messages, download attachments or click on links in emails you weren’t expecting
• Take action – forward suspicious emails claiming to be from HMRC and details of suspicious calls to phishing@hmrc.gsi.gov.uk and texts to 60599. Alternatively, contact Action Fraud on 0300 123 2040 or use its online fraud reporting tool, especially if you suffer financial loss
• Check GOV.UK for information on how to avoid and report scams and recognise genuine HMRC contact
• If you think you have received an HMRC-related phishing/bogus email or text message, you can check it against the examples shown in this guide