Why has HMRC asked me about my tax behaviour?
People often ask us to explain why HMRC is interested in the circumstances surrounding their tax behaviour, such as paying late or not reporting certain income on their tax return.
Planning for VAT on school fees – are you ready?
With the introduction of VAT on private school fees coming into force from 1 January 2025, how prepared are you and what are you doing about it?
It’s crucial to assess your readiness and take proactive steps now.
What are the benefits of filing your tax return early?
It can be a misconception that you must wait until January to file your tax return.
Do you have to register with HMRC if you are self-employed? | How to register as self-employed
Self-employed taxpayers should notify HMRC as soon as practicable when they begin working for themselves. HMRC must be officially notified by 5 October following the end of the tax year so that a self-assessment return can be issued on time and to avoid any unnecessary penalties.
Advising HMRC about changes in your income | What changes do You need to report?
There are a number of reasons why you might need to contact HMRC
about changes in your income.
HMRC’s guidance states that this could happen because you:
• did not realise you needed to tell HMRC about it;
• were not sure how to declare it; or
• did not declare it because you could not pay the tax.
Advising HMRC about changes in your income | What changes do You need to report?
There are a number of reasons why you might need to contact HMRC
about changes in your income.
HMRC’s guidance states that this could happen because you:
• did not realise you needed to tell HMRC about it;
• were not sure how to declare it; or
• did not declare it because you could not pay the tax.
The Residence Nil Rate Band Explained | What Is The Transferable Residence Nil Rate Band
The Inheritance Tax residence nil rate band (RNRB) is a proportion of an estate on which tax is payable at a rate of zero percent for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such as children or grandchildren after their death.
The Residence Nil Rate Band Explained | What Is The Transferable Residence Nil Rate Band
The Inheritance Tax residence nil rate band (RNRB) is a proportion of an estate on which tax is payable at a rate of zero percent for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such as children or grandchildren after their death.
WHAT IS THE NON-RESIDENT LANDLORD SCHEME?
The Non-resident Landlord (NRL) Scheme is a special scheme for the UK
rental income of non-resident landlords. This includes companies or trustees whose '
usual place of abode' is outside the UK. HMRC classifies a person living abroad for 6 months or more per year, as a non-resident landlord. This is the case even if the person is a UK resident for tax purposes.
HMRC temporarily extend online self-assessment tax return deadline
HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for one month giving Self-Assessment taxpayers extra time (if required) to complete their 2020 to 2021 tax return and pay any tax due.
What are the tax collection options?
If you do not pay your tax bill on time and cannot make an alternative arrangement to pay, HMRC can take ‘enforcement action’ to recover any tax you owe.
Information on the tax system when becoming self-employed
If you decide to become self employed, it is vital that you register with HMRC by 5th October following the end of the tax year in which you became self employed. If you do not follow this process, you may be liable to a penalty based on the tax that is due to HMRC.
Covid-19 and benefits in kind – Matters to consider when reporting expenses and benfits in kind on P11Ds for 2020/21
There are many expenses and benefits in kind which will need to be reported, however there are some exemptions for expenses associated with working from home.
Gift Aid – Be cautious if your income has dropped
The tax that is claimed back by the charity is funded by the tax paid by the donor. This is only applicable where the donor has paid more tax in the year than is claimed back by charities and community amateur sports clubs on donations. Problems can arise if the donor’s income falls, such that they are not classed as a taxpayer or pay less tax than is claimed back on the donation.
HOW WILL THE UPCOMING CHANGES TO OFFPAYROLL WORKING IMPACT REAL ESTATE AND CONSTRUCTION INDUSTRIES
The update now puts the onus of the SDS (Status Determination Statement) on medium or large companies using contractors. Companies which HMRC defines as a small company will not have to complete the SDS.
Tax break for married couples and civil partnerships
HMRC is encouraging married couples and people in civil partnerships to sign up for a tax break this year.
Take advantage of tax breaks from your time working at home
Employed and Self-Employed persons can take advantage of tax breaks on their time working from home.
Extension to the VAT deferral scheme
Organisations were able to take advantage of the Coronavirus VAT payment deferral scheme in 2020 but with a repayment deadline approaching HMRC have made these options available for those which still need to pay.
How to prepare for incoming CIS VAT reverse charge changes
With the continued changes coming from HMRC to the building and construction industry, there is yet another major change on its way which will affect both customers and suppliers who are CIS and VAT registered.
Time To Pay threshold increase
In October, HMRC increased the threshold of self assessment liabilities from £10,000 to £30,000 for individuals setting up Time to Pay arrangements.
Changes To Late Filing Penalty For 2019-20 Self Assessment Returns
HMRC have today announced that Self-Assessment customers will not receive an automatic penalty for filing their 2019-20 tax return late, provided it’s filed online by 28 February 2021.
HMRC to protect at risk employers when publishing CJRS claimants
In an effort from HMRC to be more transparent about the use of taxpayers’ funds and deter fraudulent activity, they will be publishing information about employers who claimed from the Coronavirus Job Retention Scheme (CJRS) for periods starting on or after the 1 December 2020.
HMRC’s customer service levels deteriorate with call wait times increasing 31% in month
HMRC must prepare for busiest month with self-assessment deadline looming
Coronavirus VAT Deferral Scheme Extended Until March 2022
HMRC have announced that businesses who deferred VAT payments between between 20 March and 30 June 2020 and still have payments to make can opt in to the new VAT deferral payment scheme when it launches later this year.
Self-Assessment filing deadline draws near
Those who have still not submitted all of their self-assessment filing information will need to complete their 2019-20 tax return as soon as possible as the 31 January 2021 moves closer.
More on extended furlough scheme
Most employers who are eligible will be aware that the furlough scheme (the Coronavirus Job Retention Scheme) has been extended.
Customs changes from 1 January 2021
Many smaller businesses will not have the resources to train and employ their own customs clearance staff in which case you may have to consider using a customs agent or broker.
Postponed VAT Accounting
What is postponed accounting?
Postponed accounting means that the importer does not pay import VAT when goods arrive at a port or airport instead the VAT is deferred.
CJRS Claims deadline
With the nationwide lockdown coming to an end and tiers being re-introduced there are a lot of changes happening which may distract you from upcoming business support deadlines such as the CJRS Claims Deadline.
HMRC Confirms Virtual Christmas Parties Can Be Tax Exempt
HMRC has confirmed that the annual parties exemption now also applies to the costs associated with virtual parties and festivities in the same way that it would for traditionally held parties.
Airbnb Landlords Income and HMRC
You may have seen recent headlines about the tax affairs of Airbnb in the UK and that HMRC have charged them with an additional £1.8 million of tax following an investigation. If you are a UK citizen, or a general fan of tax payments you may think that sounds good as the company didn’t seem to be paying enough tax. But how will this change affect Airbnb hosts?
Students warned to avoid tax scams
Readers with children at university should pass on this message as students starting university this year are being warned by HMRC that they could be targeted by a fresh wave of tax scams.
Company voluntary arrangements ("CVA") - A valuable restructuring tool in a post pandemic world
CVA’s are often associated with large multi-site retailers seeking to restructure shop-lease portfolios however they are much more than this.
The deadline for paper tax returns is looming...Avoid these common mistakes
The countdown has begun for this years’ paper tax return, a crucial time for around 400,000 taxpayers who are self employed or those that receive other income that requires the submission of a tax return, which is normally rental income, or interest and dividend income that is liable to income tax at more than the basic rate.
Tax warning: Late submission of self-assessment could lead to £100 fine
Taxpayers should take note of an important upcoming deadline – the 31 January 2020. This date marks the self-assessment tax return deadline for last year’s tax year (6 April 2018 – 5 April 2019).
Obtain proof of employment history
If you need evidence of employment for a claim, the following notes published by HMRC may help.
The “loan charge” controversy continues
The following press release was published by HMRC last month. Extracts are reproduced below:
HMRC prevents phone fraudsters
New defensive controls recently deployed by HMRC have put an end to fraudsters spoofing the tax authority’s most recognisable helpline numbers.
Do you need to make a tax disclosure?
HMRC has a new £100m weapon to help identify individuals who may not be declaring all of their income and, therefore, paying too little tax.
Can’t pay your tax?
A reminder that HMRC may consider extended options for settling your outstanding tax bill. The key is to contact HMRC, explain why you can’t pay on time, and discuss how you can settle any outstanding liabilities.
Can’t pay your tax?
A reminder that HMRC may consider extended options for settling your outstanding tax bill. The key is to contact HMRC, explain why you can’t pay on time, and discuss how you can settle any outstanding liabilities.
Making Tax Digital: Are you aware of the changes to the Government Gateway?
Making Tax Digital is fast approaching; therefore it is important for mandated businesses with taxable turnover of £85,000+ start preparing for the switch over in April 2019. The first VAT period affected is the period which begins after 1 April 2019.
Making Tax Digital: Are you aware of the changes to the Government Gateway?
Making Tax Digital is fast approaching; therefore it is important for mandated businesses with taxable turnover of £85,000+ start preparing for the switch over in April 2019. The first VAT period affected is the period which begins after 1 April 2019.
Making Tax Digital Update: HMRC Letters
HMRC have been writing to VAT registered businesses about Making Tax Digital for VAT, they have confirmed that all letters have now been sent.
Making Tax Digital - Bridging software
Can we still use spreadsheets after MTD comes into force?
One of the most commonly asked questions concerning the Making Tax Digital changes coming in from April 2019 concerns whether spreadsheets count as “functional compatible software”. The answer to this is both yes and no.
Self Assessment Update
On Friday 1st February, HMRC announced that over 93% of taxpayers filed their self-assessment tax returns on time and before the 31st January deadline.
Self Assessment Update
On Friday 1st February, HMRC announced that over 93% of taxpayers filed their self-assessment tax returns on time and before the 31st January deadline.
How to spot a HMRC scam
Fraudsters will disguise themselves as HMRC and other government departments/professional bodies to:
• Obtain personal details which they will sell or use for identity theft,
• Coax victims into handing over money,
• Use victims’ details to steal money from their accounts.
How to spot a HMRC scam
Fraudsters will disguise themselves as HMRC and other government departments/professional bodies to:
• Obtain personal details which they will sell or use for identity theft,
• Coax victims into handing over money,
• Use victims’ details to steal money from their accounts.
Making Tax Digital - Bridging software
One of the most commonly asked questions concerning the Making Tax Digital changes coming in from April 2019 concerns whether spreadsheets count as “functional compatible software”. Bridging software allows businesses to transfer the relevant VAT information from a spreadsheet directly into HMRC's MTD systems - thereby removing the need to purchase a full accounting software package - at least in the short-term.
Tax diary for November 2018
November is a very busy time for returns and tax payments. Below are the important dates coming up over the next month.
Tax diary for November 2018
November is a very busy time for returns and tax payments. Below are the important dates coming up over the next month.
Reporting tips for building contractors
HMRC recently published a list of helpful reminders regarding the submission of monthly returns to HMRC. This article lists some of the points highlighted.
Reporting tips for building contractors
HMRC recently published a list of helpful reminders regarding the submission of monthly returns to HMRC. This article lists some of the points highlighted.
Making Tax Digital timeline
You will be aware that HMRC is moving forward with their digitisation of taxpayer VAT and Income Tax reporting requirements, under their much publicised Making Tax Digital (MTD) initiative. Below you will find the most recent announcements made by HMRC on this issue.
Making Tax Digital timeline
You will be aware that HMRC is moving forward with their digitisation of taxpayer VAT and Income Tax reporting requirements, under their much publicised Making Tax Digital (MTD) initiative. Below you will find the most recent announcements made by HMRC on this issue.
What is a reasonable excuse?
HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.
What is a reasonable excuse?
HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.
Making tax digital - you can use spreadsheets
HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced.
Making tax digital - you can use spreadsheets
HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced.
Making Tax Digital for VAT: how Moore can help you prepare
From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:
Making Tax Digital for VAT: how Moore can help you prepare
From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:
Points based penalties
In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations.
Points based penalties
In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations.
Construction drawn into VAT reverse charge process
It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”.
Construction drawn into VAT reverse charge process
It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”.
HMRC errors on tax calculation 2016/17 for self assessment
Many of you may have seen the recent press regarding HMRC’s calculation errors when it comes to income ta payable for individuals in 2016/17.
HMRC errors on tax calculation 2016/17 for self assessment
Many of you may have seen the recent press regarding HMRC’s calculation errors when it comes to income ta payable for individuals in 2016/17.
Fake HMRC websites are directing users to £36 per call premium lines
Fraudsters have been creating replica versions of HM Revenue & Customs (HMRC) website and directing the public to call premium rate numbers advertised on them.
Fake HMRC websites are directing users to £36 per call premium lines
Fraudsters have been creating replica versions of HM Revenue & Customs (HMRC) website and directing the public to call premium rate numbers advertised on them.
200,000 receive back pay
In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they're owed by employers has doubled after interventions by HMRC.
200,000 receive back pay
In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they're owed by employers has doubled after interventions by HMRC.
How long should you keep your records?
If you are self-employed, and obliged to submit a self-assessment tax return, you must keep your tax records for at least five years after the 31 January submission deadline of the relevant tax year.
How long should you keep your records?
If you are self-employed, and obliged to submit a self-assessment tax return, you must keep your tax records for at least five years after the 31 January submission deadline of the relevant tax year.
Isle of Wight residents hit with fake HMRC telephone scam
A number of Isle of Wight residents’ landline numbers have been targeted in a HMRC telephone scam and this has now led to police issuing a warning to all residents on the Isle of Wight.
Isle of Wight residents hit with fake HMRC telephone scam
A number of Isle of Wight residents’ landline numbers have been targeted in a HMRC telephone scam and this has now led to police issuing a warning to all residents on the Isle of Wight.
Tax-free childcare support expanded
Since 14 February 2018, tax-free childcare has become available to all remaining eligible families: parents whose youngest child is under 12. The new scheme aims to help working parents with the cost of childcare.
According to government, it is quick and easy to apply, and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HMRC has been gradually rolling out tax-free childcare since April 2017.
Tax-free childcare support expanded
Since 14 February 2018, tax-free childcare has become available to all remaining eligible families: parents whose youngest child is under 12. The new scheme aims to help working parents with the cost of childcare.
According to government, it is quick and easy to apply, and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HMRC has been gradually rolling out tax-free childcare since April 2017.
HMRC guidance defines grants and contracts for VAT purposes
HM Revenue & Customs has published updated guidance on the VAT treatment of grants and contracts to clarify which grants are outside the scope of VAT and which are subject to VAT.
HMRC guidance defines grants and contracts for VAT purposes
HM Revenue & Customs has published updated guidance on the VAT treatment of grants and contracts to clarify which grants are outside the scope of VAT and which are subject to VAT.
HMRC pledges support to businesses hit by Carillion collapse
Businesses contracted to Carillion who are worried about being able to pay their tax can get help and advice from HMRC’s Business Payment Support Service (BPSS).
Paying HMRC at the Post Office
From 15th December 2017 it will no longer be possible to make payments to HMRC at the Post Office.
Claiming back professional subscriptions
If your employment requires that you obtain and maintain membership of a professional organisation, you can make a claim to set the cost against your taxable earnings for income tax purposes. As you would expect there are a few hoops you will need to jump through to claim this relief. They are:
Claiming back professional subscriptions
If your employment requires that you obtain and maintain membership of a professional organisation, you can make a claim to set the cost against your taxable earnings for income tax purposes. As you would expect there are a few hoops you will need to jump through to claim this relief. They are:
Common misconceptions abut tax and letting property
HMRC has published a list of popular misconceptions that taxpayers have about letting property. We have listed below a summary of situations where you will need to declare rental earnings to HMRC:
Common misconceptions abut tax and letting property
HMRC has published a list of popular misconceptions that taxpayers have about letting property. We have listed below a summary of situations where you will need to declare rental earnings to HMRC:
Glasgow Rangers tax scheme kicked into touch
A scheme using Employee Benefit Trusts (EBTs) as a means of remunerating directors and staff has been defeated by HMRC in a recent Supreme Court case.
Glasgow Rangers tax scheme kicked into touch
A scheme using Employee Benefit Trusts (EBTs) as a means of remunerating directors and staff has been defeated by HMRC in a recent Supreme Court case.
One business or two for VAT?
A recent VAT Tribunal had to decide whether two hairdressing businesses should be treated as a single business for the purposes of VAT registration.
One business or two for VAT?
A recent VAT Tribunal had to decide whether two hairdressing businesses should be treated as a single business for the purposes of VAT registration.
How to reduce your tax payments
Are you self-employed? If you are, or if you are someone who doesn't pay all their tax at source, you may need to make your second payment on account for 2016-17, due date for payment is 31 July 2017.
How to reduce your tax payments
Are you self-employed? If you are, or if you are someone who doesn't pay all their tax at source, you may need to make your second payment on account for 2016-17, due date for payment is 31 July 2017.
Beneficial loans to employees
In many cases, making loans to your employees or their relatives can create an obligation to report a beneficial loan to HMRC. The deemed benefit would be a taxable benefit in kind for the relevant employee, and would increase the employer’s Class 1A NIC bill at the end of the tax year.
Beneficial loans to employees
In many cases, making loans to your employees or their relatives can create an obligation to report a beneficial loan to HMRC. The deemed benefit would be a taxable benefit in kind for the relevant employee, and would increase the employer’s Class 1A NIC bill at the end of the tax year.
VAT blow for cultural charities and public bodies
The European Court of Justice (ECJ) has finally crushed hopes that more public bodies and charities engaged in cultural activities could claim VAT exemption on their admission charges. Its recent judgment in the VAT case of the British Film Institute (BFI), released in February, draws a line under an argument that has been running for the last four years.
Making tax digital
The current tax year, 2017-18, is the last year we have to prepare for the advent of the new reporting system, Making Tax Digital for Business (MTDfB). Following the recent budget, it is now clear which businesses are going to be affected and when. Dates for implementation will be:
Making tax digital
The current tax year, 2017-18, is the last year we have to prepare for the advent of the new reporting system, Making Tax Digital for Business (MTDfB). Following the recent budget, it is now clear which businesses are going to be affected and when. Dates for implementation will be:
HMRC publishes response to Making Tax Digital consultations
HMRC published their response to the consultations that were undertaken for the Making Tax Digital (MTD) regime on 31 January 2017. We take a look at the main points of their response and consider what this will mean for business owners.
Have you fully considered your option to tax position?
Making the decision whether or not to exercise the option to tax in relation to property is not always straightforward, and it is essential that the ongoing VAT and commercial implications of any options to tax are continually monitored and reviewed.
Reporting to HMRC every quarter to go ahead in 2018
The Government and HMRC remain committed to the "Making Tax Digital" project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions.
Reporting to HMRC every quarter to go ahead in 2018
The Government and HMRC remain committed to the "Making Tax Digital" project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions.
New successes for HMRC in the courts
HMRC seem to be making progress in their attempts to discourage, and recover unpaid tax, from participators in tax evasion schemes.
New successes for HMRC in the courts
HMRC seem to be making progress in their attempts to discourage, and recover unpaid tax, from participators in tax evasion schemes.
Bogus emails and now, bogus phone calls
The “phishing” emails sent by nefarious individuals, purporting to be from HMRC, have now been joined by bogus phone calls.
Bogus emails and now, bogus phone calls
The “phishing” emails sent by nefarious individuals, purporting to be from HMRC, have now been joined by bogus phone calls.
Annual Tax on Enveloped Dwellings (ATED)
ATED is an annual tax charge, mainly by companies, that own UK residential property valued at £500,000 or above.
Annual Tax on Enveloped Dwellings (ATED)
ATED is an annual tax charge, mainly by companies, that own UK residential property valued at £500,000 or above.