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Tutors and Coaches have until end of March with HMRC

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Tutors and coaches who have not paid taxes or national insurance on their income have until the end of March to come right with HMRC and face reduced penalties and interest charges.

HMRC has had a number of amnesty campaigns running in the last few years giving these self-employed and sole trader individuals the chance to come clean.

HMRC’s Tax Catch Up Plan gives these Tutors and Coaches the opportunity to bring their tax affairs up to date.

Marion Wilson, head of campaigns at HMRC, described how it’s better for these self-employed tax payers to own up now rather than wait to be hunted down by HMRC. These people will face more lenient penalties than if they wait to be caught at a later date.

HMRC has raised more than £500 million in taxes that would not have been declared and a further £105 million has been raised from further investigations by HMRC tax inspectors.

HMRC’s new RTI is a welcome change

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HMRC’s new way of reporting PAYE payments to a company’s PAYE scheme is welcomed by our Accountants. Instead of filing an End of Tax Year P35 and P14 return each year, employers will now be required to file details of PAYE payments to HMRC throughout the year as part of their payroll process. This will reduce a spike in workload around April/May each year when the old style returns fall due, and will allow accountants to spend time on making sure they are meeting their clients’ expectations and looking after their clients’ best interests. The majority of employers will legally be required to implement RTI from April 2013, and all employers will be required to implement it by October 2013. Our team of Accountants at Boox welcomes this new initiative by HMRC and in fact, we’re almost fully prepared to make the switch for our customers. For more information see HMRC’s website.

Accountant swindles IT contractors

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  There are any number of contractor accountants that Limited Company contractors could choose from nowadays, but one of the most obvious factors that many completely ignore is simply doing your own basic due diligence on your accountants and on the service you’re receiving from them. ContractorUK today reported on the scandal where many IT contractors were swindled by their accountant (based in Wakefield) when it came to their company’s corporation tax that they were supposedly paying to HMRC. It turned out that their accountant actually gave the IT business owners his bank details. It even went so far as when the IT company owners followed this up with HMRC, it was revealed that the accountant had submitted nil returns and got his hands on the funds by way of an HMRC refund back to his own bank account. Always be sure to do a little of your own due diligence with your accountants. Most are credible and are … »

Tax Deadline is January 31st; Stricter Fines for Late Tax Returns

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HM Revenue and Customs (HMRC) is re-emphasizing the 31 January 2012 deadline for filing self-assessment tax returns. January 31st is the deadline for online submission of self assessment tax returns. Anyone who submits paper tax returns will be automatically fined £100 regardless of whether they have tax to pay or not. The paper deadline was 31 October 2011. Moreover, the HMRC is now set to impose stricter penalties for late filing. Late filing of self assessment returns will have a fixed £100 penalty. More than three months late constitute a daily fine of £10 up until 90-day period amounting to £900. HMRC has now imposed an additional £300 penalty for those self assessment returns that are 6 months late or 5% of the total tax payable (whichever is higher). The same applies for being 12 months late. In serious cases, the penalty can be 100% of the tax payable. Anybody who … »

Unemployment May Increase Demand for Limited Company Contractors

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The need for limited company contractors is expected to rise to see the completion of projects in different sectors in the coming months. To keep up with demand and to cope with the economic downtrend, businesses are predicted to prefer bringing on flexible  contractors under contracts for services than to hire permanent employees. The forecast was made after the Office for National Statistics released the recent unemployment rate statistics. Unemployment rose by 118,000 in three months to November 2011, making a total of 2.6 million people jobless. The highest since 1994. Unemployed women increased by 1.2 million, the highest since 1997, and unemployed 16-24 year olds rose to 1.0 million, the highest since 1992. While there is a significant rise in unemployment, there is an improvement in the number of employed people. This upward trend is attributable to the increase in part time jobs by 75,000. However, permanent jobs decreased … »

Relevance of Contractor Accountants in the World Today

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The first rule of investment is investing in yourself and in people you can trust. In this dog eat dog world we live in, it’s impossible to survive without having basic knowledge of running and managing your own business. The second step is hiring a trustworthy accountant to advise you on your business, to give you up to date reports on the company’s progress and to ensure that you and your business meets all the statutory filing obligations that the UK government imposes. Some people seem to think that hiring a professional contractor accountant will just cost them more money; when in fact, you can actually save money. Contractor accountants know the ins and outs of the UK tax regimes applicable to you and your business and should have a thorough knowledge of key legislations that may affect you, such as IR35.  As mentioned earlier, employing the right contractor accountant … »

Easiest Way to Set Up a Limited Company

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Starting up your own business is every man’s dream. But with the current status of the global economic climate, entrepreneurs nowadays start to think twice before deciding to take on this endeavor. The recession all over the world has triggered the closure of 1000’s of companies and this dramatic shift in the global economy has changed the way people view business management. In the UK however, people are getting more into the entrepreneurial spirit and joining the growing personal business sector. Limited company formations have risen significantly from all areas in the UK as people take their ideas for offering products and services more seriously. It’s been noted that more and more people are optimistic about setting up their own limited companies as they choose to take responsibility for their income and realize every opportunity to minimize tax obligations where they can.. Although having your own limited company doesn’t guarantee … »

HMRC Vows Leniency on the Self-Assessment Deadline

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The scheduled strike by the HM Revenue and Customs personnel on 31st January, which falls on the deadline for the filing of online self-assessment tax returns, is inclined to severely hamper tax office operations. HMRC promises to be lenient in imposing late filing penalties and fines since queries may not be dealt with on time due to the lack of available resources. 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 this commonsense approach. The government does not want anyone trying to file their tax return on time to be unfairly penalized because they were unable to get through for help and advice on the 31st.” Stricter penalty schemes are imposed from this year where late filing will be charged £100 regardless of whether any income tax is due or not. However, … »