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

https://youtu.be/uh9FuN2D5v4

HM Revenue and Customs (HMRC) is urging business owners to prepare now and consider 3 steps to ensure their businesses can continue to trade with the EU if the UK leaves the EU without a deal.

The first step businesses need to take is to register for an Economic Operator and Registration Identification (EORI) number. UK businesses that have only ever traded inside the EU will not have an EORI number.

In the event of a no deal exit, businesses will be unable to continue trading with the EU without an EORI number; however, HMRC figures show that so far just 17% of these businesses have registered.

Business owners can apply for their EORI number.

After getting an EORI number, businesses need to take the second step and consider how they want to make customs declarations. Businesses can appoint a customs agent if they want someone else to do it. Most businesses with customs obligations choose to use a customs agent.

For businesses that import goods into the UK from the EU using roll on, roll off locations, they can take a third step and register for new Transitional Simplified Procedures (TSP). TSP will allow businesses to import without having to make a full customs declaration at the border, and postpone paying any import duties. For imports using other locations, and for exports, standard customs declarations will apply.

Businesses that import goods from the EU can register for the new TSP.

Financial Secretary to the Treasury Mel Stride MP said: “We want businesses to be able continue trading with minimal disruption in any scenario but we also know that people tend to leave things until the last minute and we would urge against that.

“We are specifically advising businesses to take some simple steps to be prepared – the first thing they need to do is register for an EORI number – it is free and takes less than 10 minutes.

Step-by-step advice can be accessed via GOV.UK – the help is there, we just need business owners to take action.”

In September 2018, December 2018 and January 2019, HMRC wrote directly to 145,000 VAT-registered businesses that only trade with the EU advising them to start their preparations and apply for an EORI number.

There are another estimated additional 95,000 non-VAT registered businesses that also need to take action.

Despite these letters, only 40,973 have registered for an EORI number since October.

https://youtu.be/WERGzqLhgak

To help businesses make import and export declarations, HMRC has made £8 million in funding available for traders and intermediaries to support them with training and IT costs. There is still £3 million remaining of this funding, so there’s still time to put in a bid.

As the deadline approaches for submitting returns and paying tax for 2017 to 2018, HMRC reveals some of the most bizarre excuses it has received for not paying on time.

Most taxpayers complete their tax returns honestly and on time but every year HM Revenue and Customs (HMRC) receives some outlandish excuses and expense claims.

Some of the most bizarre excuses HMRC received from customers who missed the Self Assessment deadline include being too short to reach the post box and having fingers too cold to type. Here are some of the strangest from the past year:

  • my mother-in-law is a witch and put a curse on me
  • I’m too short to reach the post box
  • I was just too busy – my first maid left, my second maid stole from me, and my third maid was very slow to learn
  • our junior member of staff registered our client in Self Assessment by mistake because they were not wearing their glasses
  • my boiler had broken and my fingers were too cold to type

As well as unbelievable excuses, every year we also receive some dubious expenses claims for unconvincing items like woolly underwear and pet insurance for a dog. Some of the most questionable include:

  • a carpenter claiming £900 for a 55-inch TV and sound bar to help him price his jobs
  • £40 on extra woolly underwear, for 5 years
  • £756 for my pet dog insurance
  • a music subscription, so I can listen to music while I work
  • a family holiday to Nigeria

All these excuses and expenses were unsuccessful.

Angela MacDonald, HMRC Director General of Customer Services, said: “We want to make it as simple as possible for our customers to do their tax returns and the majority make the effort to do theirs right and on time. But each year we still come across some poor excuses and expenses which range from problems with maids to televisions.”
Help will always be provided for those who have a genuine excuse for not submitting their return on tme but it’s unfair to the majority of honest taxpayers when others make bogus claims.

The deadline for sending 2017 to 2018 Self Assessment tax returns to HMRC, and paying any tax owed, is 31 January 2019.

HMRC will treat those with genuine excuses leniently, as we focus our penalties on those who persistently fail to complete their tax returns and deliberate tax evaders. The excuse must be genuine and we might ask for evidence. Those listed above were all declined on the basis that they were either untrue or not good enough reasons.

Customers who provide HMRC with a reasonable excuse before the 31 January deadline can avoid a penalty after this date.

The penalties for late tax returns are:

an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
after 12 months, another 5% or £300 charge, whichever is greater
There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

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

Barter Durgan can help you with your tax return. Contact us today on 02392 738311 or email us: accountants@barterdurgan.co.uk

https://youtu.be/_QzNuPkf9Iw

Around 5,542,000 taxpayers have less than a month to complete their Self Assessment tax returns before the 31 January 2019 deadline – so talk to Barter Durgan today and we can help.

More than 11.5 million 2017 to 2018 tax returns are due and HM Revenue and Customs (HMRC) expects the vast majority of taxpayers to complete their returns and pay any tax owed by the end of the month.

About 52% of taxpayers have already filed their returns, as of 31 December 2018, and more than 5 million have completed their returns online (88% of the total returns filed).

Financial Secretary to the Treasury, Mel Stride, said: “It is encouraging that around 52% of taxpayers have already completed their Self Assessment tax returns. With less than one month to go before the deadline, there are still many people that need to act now.”

HMRC is encouraging all Self Assessment filers to complete their returns by 31 January and is offering support every step of the way.

Angela MacDonald, HMRC’s Director General for Customer Services, said: “The Self Assessment deadline on 31 January is fast approaching, but there is still time for customers to file their tax returns online and on time to avoid any unnecessary penalties.

“If you are completing Self Assessment for the first time or are yet to start your 2017 to 2018 tax return, there is a wide range of support and guidance available on GOV.UK to help at every stage of the tax return process.”

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

The penalties for late tax returns:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
  • after 12 months, another 5% or £300 charge, whichever is greater
  • There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

Talk to us today: Email John Pache or phone us on: 02392 738311

 

HM Revenue and Customs is reminding taxpayers during Talk Money Week how it can provide them with financial support.

From helping people buy their first home to government-funded top-ups for savers, HM Revenue and Customs (HMRC) is supporting Talk Money Week and reminding taxpayers how the department can help boost their finances.

Mel Stride MP, Financial Secretary to the Treasury, said: “The tax that HMRC collects funds our vital public services, and also provides financial support to taxpayers and those most in need through programmes delivered by HMRC.

“We want to make sure everyone gets the financial help they are entitled to – offering a helping hand so they can take that first step on the property ladder through First-Time Buyers Relief, or supporting them with the cost of childcare through Tax-Free Childcare.”

Ways in which HMRC is helping taxpayers boost their finances include:

  • If you are married or in a civil partnership, you can claim up to £238 a year in Marriage Allowance. It is quick and easy to apply online. If you claim at any point in the tax year, you will still receive the full entitlement.
  • Are you on a low income and find it difficult to save money? Help to Save is a new government savings scheme. It rewards savers with an extra 50p for every £1 saved, meaning over 4 years a maximum saving of £2,400 would result in an overall bonus of £1,200.
  • Tax-Free Childcare is available for parents or guardians with children aged under 12, or aged under 17 if disabled. It is available to around 1.5 million households to help with the cost of registered childcare, enabling more parents to go out to work. For every £8 that you 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). You can check whether you’re eligible.
  • Nurses, hairdressers, construction workers and millions of other employees can claim tax relief on work-related expenses – money they’ve spent on things like work uniform and clothing, tools, business travel, professional fees and subscriptions. A simple Check if You Can Claim tool is available.
  • If you are first time buyers of a residential property you can claim First-Time Buyers Relief on your property purchase made on or after 22 November 2017 – this applies to England, Wales and Northern Ireland only. This means you will not pay any stamp duty on properties up to the value of £300,000 outside London, or £500,000 in London. You can read further guidance and check your eligibility.

HMRC has also designed an accessible and free resource – Junior Tax Facts – to educate young people on how public money is raised and spent.

Talk Money Week (formerly Financial Capability Week) runs from 12 to 18 November and is the annual celebration of the work thousands of organisations are doing to improve money management across the UK. It aims to get more people talking about money.

HM Revenue and Customs (HMRC) is urging UK taxpayers to come forward and declare any foreign income or profits on offshore assets before 30 September to avoid higher tax penalties.

New legislation called ‘Requirement to Correct’ requires UK taxpayers to notify HMRC about any offshore tax liabilities relating to UK income tax, capital gains tax, or inheritance tax.

However, some UK taxpayers may not realise they have a requirement to declare their overseas financial interests. Under the rules, actions like renting out a property abroad, transferring income and assets from one country to another, or even renting out a UK property when living abroad, could mean taxpayers face a tax bill in the UK.

The Financial Secretary to the Treasury, Mel Stride MP, said: “Since 2010 we have secured over £2.8bn for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules.

“This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now.”

From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard (CRS). CRS data will significantly enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received.

The most common reasons for declaring offshore tax are in relation to foreign property, investment income and moving money into the UK from abroad. Over 17,000 people have already contacted HMRC to notify the department about tax due from sources of foreign income, such as their holiday homes and overseas properties.

Customers can correct their tax liabilities by:

  • Using HMRC’s digital disclosure service as part of the Worldwide Disclosure Facility or any other service provided by HMRC as a means of correcting tax non-compliance.
  • Telling an officer of HMRC in the course of an enquiry into your affairs.
  • Or using any other method agreed with HMRC.

Once a customer has notified HMRC by September 30th of their intention to make a declaration, they will then have 90 days to make the full disclosure and pay any tax owed.

If taxpayers are confident that their tax affairs are in order, then they do not need to worry. If anyone is unsure, HMRC recommends they seek advice from a professional tax adviser or agent.

Contact Barter Durgan today on 02392 738311 or by Email: accountants@barterdurgan.co.uk and we’ll be happy to help.

HM Revenue and Customs has launched new and innovative technology to help more than three million customers renew their tax credits by July 31st.

HMRC has developed a customer-focused service through Amazon Alexa specifically for those seeking help with their tax credits renewals.

Customers with Amazon Alexa-enabled devices can ask Alexa to ‘open HMRC’ and ask for help and information with a change of circumstances, payment information, or a renewal. No personal information is stored on Alexa and customers cannot renew their tax credits using Alexa.

Customers can also use the HMRC App on their smartphone to:

  • renew their tax credits
  • check their tax credits payments schedule
  • find out how much they have earned for the year

Tax credits help working families with targeted support, and more than 65,000 customers this year have already used the app to renew their tax credits, compared to 38,411 customers in 2017.

All online customers can now log into GOV.UK to check the progress of their renewal so they can be reassured it’s being worked on and know when they’ll hear back from HMRC.

Angela MacDonald, HMRC’s Director General for Customer Services, said: “We know our customers have hectic lives – full of interruptions and distractions – which is why HMRC’s online services are available at all times of the day and night. As the 31 July deadline for tax credits renewals approaches, customers can feel reassured that they can renew their benefits online or via the HMRCApp at a time that suits them. And if they need to access help and support, Alexa can help customers find out about what to do when they receive a renewal pack, how to change their circumstances, or how to find out about payment information. We’ve improved our services so customers can renew their tax credits at a time that’s convenient for them. ”

Online help and information on renewing tax credits is available on GOV.UK and via HMRC’s customer service Twitter feed @HMRCcustomers. Support is also available on the tax credits helpline (0345 300 3900).

The deadline for people to renew their tax credits is 31 July 2018. Failure to renew before the deadline will mean payments are stopped and customers may have to repay the money they have received since April.

If a customer requests further information through an SMS, the mobile phone number is stored for 6 hours and then automatically deleted.

Claimants can get help and information on renewing tax credits:

  • on GOV.UK
  • by tweeting @HMRCcustomers or posting on our Facebook page with general queries
  • using HMRC’s App, which is available on the App Store or Google Play Store
  • using HMRC service on Amazon Alexa
  • using the online forum (click on Tax Credits and You)
  • through HMRC’s webchat help service

We have a vacancy in our practice for full-time AAT trainee accountant. The role would suit a school or college leaver. No experience is necessary but an enthusiasm for learning and an interest in finance is essential. A full study package will be provided.

Our office is busy and friendly and we are based in the heart Southsea.

As a general practice, the role will include all aspects of accountancy such as preparation of accounts for sole traders, partnerships and limited companies, bookkeeping, VAT returns and taxation, providing relevant work experience to complement the knowledge required during study.

Please send your CV to John Pache. We look forward to hearing from you.

Customers are advised to lookout for a new bogus email scam, claiming to be from HMRC.

If you receive an email with a subject that reads “You have received new messages from HMRC”, that also has an attachment, they should send it to phishing@hmrc.gsi.gov.uk and then delete it.

HMRC will never ask for any personal, or financial details over emails or text messages.

For more advice on scams, phishing and genuine HMRC contact, please visit G?OV?.U?K 
and search ‘phishing’.