Government takes action to block tax avoidance involving post-cessation trade relief (Jan-11)

The Government has today announced that it will introduce new legislation to block a tax avoidance scheme involving post-cessation trade relief. The change in law, which will come into effect immediately, was announced today by Exchequer Secretary to the Treasury, David Gauke.
 
Post-cessation trade relief allows a person to claim a deduction in their income tax calculation for certain payments and bad debts arising after a trade, profession or vocation has ceased. The avoidance scheme being blocked by the Government today would involve individuals artificially exploiting the relief to claim a tax deduction.

The Government’s action is being taken to address the risk of significant losses to the Exchequer as a result of the avoidance scheme. Further detail on the change is available on the HM Revenue & Customs (HMRC) website.
David Gauke said:

“Tackling tax avoidance is a priority for the Government. It is unacceptable, at a time when we are trying to bring down the deficit, that there are those who try to avoid paying the tax they owe. We have acted quickly to prevent the use of this particular scheme and we will not hesitate to close down other avoidance schemes as we become aware of them.”

If you would like to discuss this further, contact My Controller.

New Year Tax Return Reminder  (Jan-11)
HM Revenue & Customs (HMRC) is issuing a New Year reminder to anyone who hasn’t yet sent in their 2010/11 Self Assessment tax return.

Internet Trader Jailed for VAT Fraud (Dec-11)

A 40 year old man has been jailed for attempting to evade over £420,000 of Value Added Tax (VAT) due on goods sold online.
 
Gregory Allnutt from south east London was sentenced to 20 months imprisonment at Southwark Crown Court after an investigation by HM Revenue & Customs (HMRC).
Chris Martin, HMRC’s Assistant Director of Criminal Investigation said:

”Allnutt thought that by trading online he could avoid paying his taxes, but he has discovered that isn’t the case. Our successful investigation and today’s sentencing send a clear message to others involved in such crime that our investigators will identify and pursue you."

In early 2012, HMRC will be launching a Campaign focused on those who are using e-marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed.

If you would like help with your VAT returns, contact My Controller.

Know your overseas shopping limits this Christmas  (Nov-11)

Don’t get hit by unexpected charges when you are shopping for Christmas bargains this year, HMRC’s Angela Shephard advised today.

If you are going abroad to do Christmas shopping, or buying goods online from non-EU countries, you need to know how much you can buy before you have to pay import duty or VAT.

HM Revenue & Customs (HMRC) Head of Customs Policy, Angela Shephard, said:

“We know many people like to go abroad at this time to buy their Christmas gifts, or buy online from non-EU countries, and think that the ‘cheaper’ price they see is always the price they finally pay. HMRC is keen to remind the general public how much they can actually bring back from abroad or buy from an online overseas seller without having to pay import duty or VAT.

“You don’t want to be faced with unexpected extra charges, when you thought you had found a bargain.”

HMRC now Target Electricians (Nov-11)

HMRC is continuing its targeted campaigns into tradespeople with vigour with the announcement of the Electricians Tax Safe Plan (ETSP).
 
The ETSP will begin in February 2012 and builds on HMRC's plumbers' campaign and gives an opportunity for electricians to come forward and declare unpaid tax. Considering that the Tax Safe Plan has so far generated an additional £1.98million, with more expected once the final disclosures are made, it is no surprise that HMRC are utilising similar tactics for their latest campaigns. The HMRC website defines an electrician or electrical fitter quite widely as ‘anyone who installs, maintains and tests electrical systems, equipment and appliances under stringent safety regulations.’
 
If you would like help in this area, contact My Controller.

Don’t send your tax return on paper!  (Oct-11)

If you haven’t sent in your 2010/11 Self Assessment return, you must send it online if you want to avoid a penalty, as the 31 October deadline for paper returns has now passed.

Send in a paper tax return on or after 1 November and you’ll have to pay a £100 penalty – even if there is no tax to pay, or you pay the tax due on time – following the introduction of a new penalty regime this year. The longer you delay, the more you'll have to pay, as there are further late-filing penalties after three, six and twelve months.

Your online tax return must reach HM Revenue & Customs (HMRC) by 31 January 2012. If you haven't sent an online tax return before, make sure you register for HMRC Online Services by 21 January.

It’s important to remember that, if you do send a paper return after the 31 October deadline, you cannot avoid the £100 penalty by subsequently filing online.

For help and advice on completing a return, contact My Controller.

 
No holiday havens for wealthy tax cheats  (Oct-11)

Wealthy tax cheats with overseas property are now being targeted by a new 200-strong team of investigators and specialists, HM Revenue & Customs (HMRC) announced today.

The newly-formed team started work this month, bringing together experts from across the department who will use new and innovative risk assessment techniques to identify areas where wealthy individuals are avoiding and evading taxes and duties.

One of the first groups being targeted is wealthy individuals who own land and property abroad. Sophisticated data mining techniques have been applied to publicly available information to identify individuals who own property abroad. HMRC risk assessment tools are then being used to highlight those people who do not appear able legitimately to afford the property, as well as those who do not appear to be declaring the correct income and gains from the property.

Other work currently planned involves commodity traders and people holding offshore accounts. Much of this work will be undertaken in co-ordination with other teams from across HMRC, including those who deal with corporate entities, residence and domicile issues, and trusts and estates. Further details will be announced in due course.

Exchequer Secretary to the Treasury, David Gauke, said:

“The Government is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years in the last Spending Review. This new team is part of that investment.

With HMRC’s increased capability and expertise, and its increasing success in tackling evasion both at home and offshore, the message is clear: there is no hiding place for tax cheats.”

This means that it is more important than ever to ensure that your tax plans are up to date and suitable for you.

For help with Tax Planning contact My Controller.

 
Tutors and coaches targeted in new tax campaign  (Oct-11)

A campaign to target private tutors and coaches who have undeclared tax liabilities has been launched by HM Revenue & Customs (HMRC).

The Tax Catch up Plan (TCP) is for people providing private lessons, regardless of whether they have a teaching qualification. It is aimed at those who profit from tuition and coaching, as a main or secondary income, on which the correct tax has not been paid because they have not told HMRC about it.

The opportunity is available to those providing tuition, instruction or coaching. This includes, for example, tuition of traditional academic subjects, fitness and dance instruction, musical instrument tuition, art, services provided by life coaches and others.

Under the plan, tutors and coaches have until 31 March 2012 to come forward and tell HMRC about their outstanding tax for the years up to 5 April 2010, and pay what they owe. The plan makes it easy for customers to put their tax affairs right and keep them on the right track in the future.

Those who come forward by the deadline are likely to receive the best possible terms for paying the tax owed. If they have to pay a penalty, it is unlikely to be more than 20 per cent of the unpaid tax. Those who wait for HMRC to come to them will find that they have to pay much higher penalties, or even face criminal prosecution. After 31 March, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward.

Marian Wilson, Head of HMRC Campaigns, said:

“Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by everyone. We are making it as easy as possible for people offering tuition and coaching to use this unique opportunity to put their tax affairs in order by making a full disclosure, and benefit from the best possible terms.

“We are using various intelligence sources to identify and then target those who do not take advantage of this opportunity to declare their full income. The message is clear: contact us before we contact you.“

The Tax Catch up Plan has two stages:

* From 10 October 2011 to 6 January 2012, tutors/coaches/instructors must register with HMRC to “notify” that they plan to make a voluntary tax disclosure.

* By 31 March 2012 those who have registered to notify must tell HMRC what they owe and pay the tax, interest and penalties due.

For help with Tax Issues contact My Controller.

Improving Slowly Is Easy. Here Are 3 Keys To Making Giant Leaps 
(Oct-11)

There's nothing wrong with improving an existing design. But if you're interested in designing a truly innovative product, read on.

Technology designers shout the famous Einstein quote with the same frequency and urgency that a puppy relieves itself on your favorite rug: "Everything should be made as simple as possible, but not simpler." 

But how frequently do they actually achieve this noble ambition? Almost never.

To read more visit :

http://www.fastcodesign.com/1665354/3-rules-for-designing-important-not-just-good-products

 
If you want to improve your business performance, contact My Controller.