This year we processed 206 Tax Returns during the month of January. Of these, over 50% resulted in tax repayments and whilst there are often delays in providing information to us, it seems in a way slightly bizarre to leave things to the last minute when a refund could possibly have been received over 6 months earlier, if only the Return had been submitted in May or June.
Dan joins us from another Coventry practice and we hope that he will bring the knowledge and skills learned already to enable him to finish his qualifications and for the benefit of our clients. Jenny has until recently worked in a commercial car dealership and we hope that her knowledge of Sage software will be invaluable to us in the future. We are delighted to have them working alongside us.
BUSINESSES URGED TO PREPARE FOR POST-BREXIT CUSTOMS DECLARATIONS
HMRC is urging VAT-registered UK businesses
which trade exclusively with the EU to be prepared for a no deal Brexit.
In a letter sent to 145,000 affected
businesses, HMRC explains changes to Customs, Excise and VAT procedures in the
‘unlikely event’ that the UK leaves the EU without a Brexit deal.
HMRC’s letter advises businesses to take
three actions ahead of ‘Brexit Day’ on 29 March 2019:
•
Register for a UK Economic
Operator Registration and Identification (EORI) number.
•
Decide whether a customs agent
will be used to make import and/or export declarations, or whether declarations
will be made by the business via software.
•
Contact the organisation
responsible for moving goods (for example, the haulage firm) in order to
ascertain whether the business will need to supply additional information to
complete safety and security declarations, or whether it will need to submit
these declarations itself.
A report jointly published by HMRC and
the National Audit Office (NAO) recently revealed that approximately 55 million
customs declarations are currently made by British businesses every year. This
figure may rise to 255 million when the UK leaves the EU.
HMRC intends to write to businesses in the
future in order to instruct them on any additional actions they will need to
take, and when. We will keep you informed of developments.
Internet links: GOV.UK publicationsHMRC letter NAO report
MTD FOR VAT – PILOT EXTENDED TO ALL ELIGIBLE BUSINESSES
HMRC has extended its Making Tax Digital
for VAT (MTDfV) pilot scheme to all eligible businesses.
For most businesses, compliance with the
regulations is mandated for VAT return periods beginning on or after 1 April
2019. However, MTDfV for some ‘more complex’ businesses has been deferred until
1 October 2019. This deferral applies to: trusts; not for profit organisations
not set up as companies; VAT divisions; VAT groups; public sector entities such
as government departments and NHS Trusts, which have to provide additional
information on their VAT return; local authorities; public corporations;
traders based overseas; those required to make payments on account; annual
accounting scheme users.
Commenting on the pilot scheme, Clare
Sheehan, Deputy Director for MTD for Business, said:
'The
MTD pilot is now available to all businesses who will need to use the service
from April. This marks a significant milestone towards our delivery of a modern
tax administration.’
'We
encourage all eligible businesses to join and try out the service before they
are mandated to use it.'
HMRC has also confirmed that Brexit will
not affect the introduction of MTDfV. In a recent letter, Jim Harra, Deputy
Chief Executive of HMRC, wrote:
'Our
system is already live and by the end of February we'll have written to every
affected business, encouraging them to join the thousands of others who have
registered.'
Please contact us for help with MTDfV.
Internet link: GOV.UK publications
HMRC’S VOICE ID DATABASE
Since 2017, HMRC has captured millions of
callers’ voice data on its Voice ID system by encouraging the caller to say a
key phrase instead of the conventional password to gain access to their
accounts.
However, non-profit organisation Big
Brother Watch warns that people have been ‘railroaded into a mass ID scheme by
the back door’ and has reported HMRC to the Information Commissioner’s Office
(ICO) on the grounds that it has ‘broken data protection laws’.
A Freedom of Information request revealed
almost seven million taxpayers are enrolled in HMRC’s Voice ID database of
which 162,185 individuals have opted out and had their biometric data deleted
by HMRC.
A spokesperson for HMRC said:
‘Our
Voice ID system is very popular with millions of customers as it gives a quick
route to access accounts by phone.
All
our data is stored securely, and customers can opt out of Voice ID or delete
their records any time they want.’
Internet links: https://bigbrotherwatch.org.uk/all-media/hmrc-voice-id-delete/
SPRING STATEMENT DATE ANNOUNCED
The Chancellor of the Exchequer, Philip
Hammond, has announced that the government will respond to the forecast from
the Office for Budget Responsibility (OBR) in the Spring Statement on Wednesday
13 March 2019.
The Chancellor may take the opportunity to
announce tax changes and consultations.
We will update you on pertinent
announcements.
Internet link: GOV.UK news
‘UNBELIEVABLE EXCUSES’ FOR LATE FILING OF TAX RETURNS
HMRC has revealed some of the most ‘bizarre
excuses’ taxpayers have given for failing to file their self assessment tax
return on time.
Excuses included ‘I’m too short to reach the post box’, and ‘my boiler had broken and my fingers were too cold to type’. One
taxpayer claimed that a junior member of staff ‘forgot to wear their glasses’, and accidentally registered a client
for self assessment. Another told HMRC that their mother-in-law was a witch,
and that she had put a curse on the taxpayer, which prevented them from filing
their tax return on time.
In addition to these excuses, HMRC also
stated that, every year, they receive some unconvincing expenses claims.
One individual attempted to claim £40 for ‘extra woolly underwear’, whilst another
taxpayer tried to claim £756 for pet insurance. Meanwhile, a carpenter
attempted to claim £900 for a 55-inch TV and sound bar, which he claimed would
‘help him price his jobs’.
HMRC Director General of Customer Services,
Angela MacDonald, said:
‘Help
will always be provided for those who have a genuine excuse for not submitting
their return on time, but it’s unfair to the majority of honest taxpayers when
others make bogus claims.’
HMRC stated all these excuses and claims
were unsuccessful.
The deadline for sending 2017/18 Self
Assessment tax returns to HMRC, and paying any outstanding liabilities, was 31
January 2019. If you have not yet filed your return please contact us for
assistance.
Internet link: GOV.UK news
PROTECT YOUR PENSION POTS
The Insolvency Service has urged
individuals saving for retirement to protect their pension pots from criminals
and ‘negligent trustees'.
Research carried out by the Service found
that criminals use a range of tactics to convince savers to part with their
funds, including persuading individuals to access their pension and invest in
unregulated schemes.
Pension scam victims lost an average of
£91,000 to criminals in 2018, according to Financial Conduct Authority (FCA)
research. Criminals often use cold-calls and offers of free pension reviews to
convince their victims to comply.
The Insolvency Service has urged savers to
be wary of calls that come out of the blue; seek financial advice before
altering their pension arrangements or making investments; and not be pressured
into making decisions about their pension.
Consumer Minister Kelly Tolhurst said:
'If
you are approached to make an investment from your pension, always do your
homework and seek independent advice, if necessary, to help you make an
informed decision.
'The
government continues to work closely with the Insolvency Service who are
working to clamp down on rogue companies targeting vulnerable people.'
Internet link: GOV.UK news
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