HMRC refunds - be scam smart

 

Be aware of copycat HMRC websites and phishing scams. Always type in the full online address www.gov.uk/hmrc to get the correct link for filing your self-assessment return online securely and free of charge.

Also be alert if someone calls, emails or texts claiming to be from HMRC, saying that you can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK for information on how to a recognise genuine HMRC contact.

Making Tax Digital for Corporation tax by 2026

HMRC is consulting on how the principles established for Making Tax Digital for quarterly online filing could be implemented for Corporation tax.

Under its ten year tax administration strategy HMRC said it would consult with stakeholders on Making Tax Digital for corporation tax during autumn 2020, and is now seeking feedback to inform the early-stage design and get a better understanding of the transitional and ongoing costs and benefits for companies of different sizes.

Nearly three million businesses and other taxpayers are within the charge to corporation tax, of which around half incur a corporation tax liability every year.

If the principles and design proposed in this consultation are adopted, they would need to maintain their records of income and expenditure digitally; use Making Tax Digital compatible software to provide quarterly summary updates, and provide an annual corporation tax return using their Making Tax Digital compatible software.

The proposed date to commence a voluntary pilot for Making Tax Digital for corporation tax is April 2024 becoming mandatory from 2026 at the earliest.

Can HMRC come after you personally for IR35 tax?

A recent decision by the First-tier Tribunal, involving a company set up by the BBC presenter Christa Ackroyd, has received a lot of press. Although this case relates to periods prior to the new rules which took effect in April 2017 and so isn’t a test of their effectiveness, the First-tier Tribunal’s decision raises an important question about where the liability for IR35 tax lies.

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IR35 status – Blanket decision-making

Recent guidance from HMRC has clarified the question of blanket decision-making confirming that this is not allowed. The IR35 status of all contractors must be assessed and determinations need to be made on a case-by-case basis.

According to the new HMRC guidance document published 27th February “The client must take reasonable care when determining whether the worker would have been an employee if they were engaged directly.

“If the client fails to take reasonable care, the responsibility for the deduction of tax, NICs and apprenticeship levy and paying these to HMRC will rest with them.” 

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Can HMRC investigate an earlier tax year?

HMRC is bound by a rigid timetable in which it can open an enquiry into your or your business’s tax returns. This is known as the “enquiry window”. If your return is submitted to HMRC:

on or before the normal deadline, it has up to twelve months from the date your return was submitted to start an enquiry.  After the normal deadline, the enquiry window runs until the next quarter day (30 April, 31 July and so on) following the first anniversary of when you submitted your return. For example, if you submitted your 2016/17 return on 1 March 2018 (a month and a day late), the enquiry window ends on 30 April 2019.

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Numerico Chartered Certified Accountants is accredited by the ACCA, which means we are wholly composed of Chartered Certified Accountants and covered by ACCA’s Group Consumer Credit Licence under the terms of the Consumer Credit Act 1974.

 

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