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  • Electricians have one week to reveal any tax owed

    Electricians have just one week to register to pay any undisclosed tax that they owe under an HM Revenue & Customs (HMRC) campaign.

    The Electricians Tax Safe Plan is a time-limited opportunity where electricians can pay any tax and interest they owe, whilst benefiting from lower penalties of only 10 per cent, with a maximum of 20 per cent. Normally, penalties of up to 100 per cent of the tax owed can be charged, with possibility of criminal investigation in the worst cases.

    This campaign is aimed at anyone who installs, maintains and tests electrical systems, equipment and appliances – and covers any tax owed, for whatever reason.

    The deadline for electricians to register is 15 May 2012. They then have to make arrangements to pay the tax owed by 14 August 2012.

    Marian Wilson, head of HMRC Campaigns, said:

    ”Electricians who think they owe tax should get in touch and get their tax affairs in order, easily, and on the best terms.

    ”We are gathering information from a wide range of sources, including online advertising, industry bodies, trade directories, professional ‘electrical safety’ certificates, trade suppliers and tax records. Our sophisticated software allows us to use this information to find people who should come forward and use the Electricians Tax Safe Plan.”

    How do electricians let HMRC know that they intend to make a tax disclosure?

    • Online by completing a form at www.hmrc.gov.uk/campaigns/notify.htm

    • Call HMRC on 0845 601 5041

    A dedicated team is available to give to information and advice.

    The Electricians Tax Safe Plan is the second part of a campaign aimed at tradespeople. The first targeted plumbers and heating engineers.

    Fourteen plumbers have been arrested so far, and one was jailed for 12 months in March for evading £91,000 of tax and national insurance.

    If you would like to discuss this situation with My Controller, get in touch.

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  • Tax credit claimants need to renew - or payments may stop

    Tax credit customers are being reminded by HM Revenue & Customs (HMRC) that they must renew claims by the 31 July deadline - or their payments may stop.

    They are urged to act as soon as they receive a renewal pack from HMRC. More than 3.3 million claimants renewed by the deadline last year, 80 per cent of those who were required to renew their claim.

    The department is also asking claimants to double-check the accuracy of the information in the pack. HMRC may make follow-up queries with claimantsí employers, to check on the correctness of some of the information.

    Claimants must also let HMRC know of any changes in their circumstances that they havenít already reported during the year. These could be about their working hours, childcare costs or pay. If asked, they must also provide details of the previous yearís income.

    Having the right documents to hand will help reduce errors when they are filling out the form or calling the tax credits helpline. These would be, for example, payslips, end of year P60 forms and childcare details.

    HMRC's Director of Benefits and Credits, Steve Lamey, said:

    "People should aim to renew their tax credits as soon as they receive their pack, and they need to make sure their details are correct. The sooner they renew, the sooner we can make sure they are getting the right money.

    Our message is - renew early, renew accurately and renew on time. If claimants donít renew their claims before 31 July, payments may stop.

    2013 will see the introduction of Universal Credit, which will by 2017 see the migration of all our Tax Credit customers to that benefit. It is therefore even more important that customers ensure that the data that we hold about their claim is accurate prior to their migration to Universal Credit."

    If you have any questions regarding this issue, contact My Controller.

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  • Tax credit claimants need to renew - or payments may stop

    Tax credit customers are being reminded by HM Revenue & Customs (HMRC) that they must renew claims by the 31 July deadline - or their payments may stop.

    They are urged to act as soon as they receive a renewal pack from HMRC. More than 3.3 million claimants renewed by the deadline last year, 80 per cent of those who were required to renew their claim.

    The department is also asking claimants to double-check the accuracy of the information in the pack. HMRC may make follow-up queries with claimantsí employers, to check on the correctness of some of the information.

    Claimants must also let HMRC know of any changes in their circumstances that they havenít already reported during the year. These could be about their working hours, childcare costs or pay. If asked, they must also provide details of the previous yearís income.

    Having the right documents to hand will help reduce errors when they are filling out the form or calling the tax credits helpline. These would be, for example, payslips, end of year P60 forms and childcare details.

    HMRC's Director of Benefits and Credits, Steve Lamey, said:

    "People should aim to renew their tax credits as soon as they receive their pack, and they need to make sure their details are correct. The sooner they renew, the sooner we can make sure they are getting the right money.

    Our message is - renew early, renew accurately and renew on time. If claimants donít renew their claims before 31 July, payments may stop.

    2013 will see the introduction of Universal Credit, which will by 2017 see the migration of all our Tax Credit customers to that benefit. It is therefore even more important that customers ensure that the data that we hold about their claim is accurate prior to their migration to Universal Credit."

    If you have any questions regarding this issue, contact My Controller.

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  • Tax Simplification For Small Businesses

    As part of the Office of Tax Simplifications' findings with regard to the taxation of small businesses it has recommended that unincorporated businesses be able to satisfy their various tax obligations by using a cash basis rather than preparing accounts based on GAAP. For very small businesses (less than £77,000 turnover) will be eager to see what comes out of the proposed consultation on a simpler basis of tax accounting. Therefore, for sole traders and partnership (but not LLPs) with a turnover below the VAT registration threshold (£77,000 p.a. from 1 April 2012) a simplified basis of calculating profits will be available with effect from 6 April 2013. It is the Government's intention to introduce this on a voluntary basis for those with a turnover below the VAT registration threshold, with the legislation being enacted in Finance Bill 2013.

    Also following the OTS report, a disincorporation relief may be introduced for small companies that no longer wish to retain the corporate form. Over recent years many small businesses have transferred into limited companies, often for tax reasons. In most cases the result has been beneficial but in some instances circumstances have changed. However, unlike incorporation, there are no specific tax reliefs for disincorporation and consequently there are often adverse tax issues which arise when trying to transfer a business from a limited company to sole trader or partnership status. The Chancellor has committed to consult on a disincorporation relief which may be introduced at some future date to help those who wish to discontinue with a limited company structure but are prevented from doing so by potential tax liabilities. A consultation document on this will be issued shortly.

    If you'd like to know more about how this could impact your business or you have any other questions, why not register for a free initial consultation.

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My Controller is an innovative and expanding Accountancy & Tax practice based in Windsor, delivering our Services to businesses throughout the Thames Valley.

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