Inheritance Tax: Rules on gifts to loved ones ‘should be simplified’
Fewer people should have to pay tax on gifts given just before death, under proposals for a major overhaul of the inheritance tax system. Please see the link below for more information:
A glitch within the HMRC self assessment system has meant that some taxpayers were not informed of the amount of tax to pay on account by 31 January 2019 and this problem won’t be fixed before 31 July 2019.
In January 2019, HMRC were experiencing a number of computer errors including the omission of tax demands for payments on account (POA) for 2018/19 from some taxpayers’ statements. This problem applies to the taxpayer’s online personal tax account, as well as to paper statements of account issued by HMRC.
This problem also arose for 2017/18 where some taxpayers’ statements did not show the POA, which was due to be paid by 31 July 2018.
How many are affected?
HMRC recognises that this is a real issue. When contacted for comment on this story a Revenue spokesperson said “We are aware of an issue with payment reminders for a small number of customers. Anyone who is affected should contact us and we’ll put it right. Nobody will be charged additional interest due to this problem.”
However, judging by the number of queries on the HMRC agent forum, this is a widespread problem.
The professional tax and accountancy bodies have complained, and HMRC has apologised to those bodies, but it has made no attempt to tell the affected taxpayers what to do. HMRC has also said it can’t fix the problem of missing POA demands in time for the 31 July 2019 payment date.
No interest
HMRC has confirmed that if the demands for POA have been omitted from the taxpayer’s statement, that taxpayer will not be charged interest as long as full payment of all the tax due for 2018/19 is made by 31 January 2020.
Nearly 1.1 million businesses have yet to register for MTD, according to the results of a Freedom of Information (FOI) request sent to HMRC by cash flow service Float.
Additionally, the data suggests that only 2% of accounting firms have registered any clients for MTD, from an estimated 72,000 tax ‘agents’ nationwide.
Float said that many businesses are “still unaware of MTD or are uncertain of what action needs to be taken to become compliant.” The company added that the MTD registration process is “confusing” and that HMRC have “much more to do to alert businesses to the change in the law”.
If you are VAT registered and would like more information regarding MTD and MTD compliant software then please give us a call on 01242 370298 or email us on office@wfrancisandco.co.uk
At the beginning of January approximately 48% of returns nationwide were still to be filed!
By the end of the month 94% of all Self Assessment Tax Returns were successfully filed on time.
It isn’t too late, there’s still time to complete your 2018 Tax Return before the deadline of 31 January 2019, to avoid a £100 penalty.
If you require our assistance call us on 01242 370298 or email office@wfrancisandco.co.uk
Records show that as at 1st January 2019 47.9% of all the anticipated 2017/18 Income Tax Returns remain to be filed in the final month of the filing period.
That amounts to 4,541,784 Tax Returns and history has shown that approx. 50% of those Returns are going to be filed by Accountants. This has been the case since the inception of Self-Assessment, which means we are going to be incredibly busy throughout January!
It has been confirmed the first ‘wave’ of 20,000 letters to affected businesses will hit doormats this week, followed by a further 180,000 to be issued next week.
If you are unaware, Making Tax Digital (MTD) for VAT is compulsory for all VAT registered businesses for VAT periods beginning on and after 1 April 2019. The requirement to keep digital records starts from this date but the first VAT return for a normal quarterly period, must be submitted by 7 August 2019.
HMRC will be running a social media campaign about Making Tax Digital (MTD) for VAT including Twitter posts and YouTube videos.
Please see the link below for more information regarding Making Tax Digital from HMRC:
https://www.gov.uk/government/news/hmrc-publishes-more-information-on-making-tax-digital
If you would like further information we are here to help! Give us a call on 01242 370298 or email us on office@wfrancisandco.co.uk
An enlightening article about HMRC having new powers to get information about your income from 3rd parties and social media!
Big Brother?
http://www.telegraph.co.uk/tax/return/taxman-unleashes-snooper-computer-information-does-have/
HMRC has published the advisory fuel rates to operate from 1 June 2013.
Advisory fuel rates are HMRC-approved rates which apply where employers reimburse for business travel in their company cars, and where employees reimburse the cost of fuel for private travel in a company car. Using the advisory rates will mean that there is no fuel benefit charge. HMRC will also accept the figures in the table for VAT purposes, though employers will need to retain receipts.
|
Engine Size |
Petrol |
LPG |
|
1400cc or less |
15p |
10p |
|
1401cc to 2000cc |
17p |
12p |
|
Over 2000cc |
25p |
18p |
|
Engine Size |
Diesel |
|
1600cc or less |
12p |
|
1601cc to 2000cc |
14p |
|
Over 2000cc |
18p |
The new rates apply to all journeys on or after 1 June 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.
For Many Years, HM Revenue & Customs (HMRC) has put extra resources into pursuing more tax. As a result, clients face an increased risk of an enquiry into their tax affairs. In addition, HMRC now has wider powers to visit premises and inspect financial records. It is expected that HMRC will use these powers frequently, that enquiries will become more complex and that the costs of responding will increase. So it is important as it has ever been for clients to obtain protection against those costs.
We have considerable expertise in defending clients under enquiry by HMRC. If you are selected for a tax enquiry, we will aim to settle it quickly and minimise the final tax liabilities. Even so, answering all of HMRC’s questions takes time and the enquiry could drag on for months. It can cost thousands of pounds to defend you, whatever the end result.
To provide peace of mind, we offer a Tax Enquiry Fee Protection Service. The service is backed by an insurable policy under which we can claim the costs of defending clients in tax enquiries. Clients who subscribe to the service will also be able to obtain helpful advice about the complex areas of Health & Safety and Employment Law.
The links below answer questions you may have about tax enquiries, sets out details of our insurance cover and other benefits, and gives information about our insurance provider.
