One simple way to avoid getting stung by the HMRC task force

We’ve all heard the story of the huge multi-national corporate companies that whilst operating very successfully in the UK pay little or no tax.

The latest company to come to light is Facebook, where it has been reported that despite making an estimated £200 million from its UK operations it paid no corporation tax last year!  And whilst Facebook tell us “We take our tax obligations seriously..to ensure compliance with local law”, it is tax avoidance in many people’s eyes. And many of us feel it is well, immoral.

HMRC

But it’s not just huge multi-nationals that are guilty of tax avoidance and the HMRC came up with the idea of launching a series of Task Forces to crack down on tax evasion throughout the UK.

Working in what they describe as “short, sharp, bursts” these task forces are focusing on targeted areas of the country, and in what they are describing as “high risk” industries.

One such Task Force is looking at the property rental market and here at Moore Accountancy we have had first-hand experience in dealing with such a case. We were contacted by a very worried landlord who had been guilty of perhaps not declaring everything as efficiently as they should. With our experience, however, we were able to handle the case with ease.

This is what they had to say

‘We recently engaged Moore Accountancy to resolve our previously undisclosed income from a flat we have been renting out for several years. Sid was wonderful, visiting us at home, spending lots of time going over our books and sorting everything out quickly and efficiently. She liaised with HMRC, and made what was quite a worrying situation into just a blip!!.  She kept us informed at all times, without us having to push for info. All in all, even having had to spend money!! it was made almost painless.!!. ‘

It’s not just landlords that have been targeted, so far they have looked at health professionals, the fishing industry in Scotland, taxi drivers in London, hauliers in the West Midlands and the holiday industry throughout the UK, to name but a few, and they have plenty more planned.

How can we help?

We feel that when dealing with the HMRC it is imperative that you get professional advice from the outset and working with a practice like Moore Accountancy is the right place to start. We have not only had experience in working with the HMRC task force but are confident that we can offer you the best advice for your situation.

There’s no getting away with it, yes you will have to pay the tax. But by doing it before the tax man cometh means that you could avoid a heavy fine and the possibility of a criminal prosecution, not to mention a very invasive investigation.

Get in touch with us today, we have a wealth of experience in dealing with the HMRC and therefore understand the process impeccably, it could save you a massive headache and tax bill in the long run.

Is Self Assessment giving you the shivers? Should you be filing one?

Many people have received a little brown envelope in the last week or so from HMRC. Inside it was a reminder that now that the 2011/12 tax year has finished you should be thinking about filing your Self Assessment Tax Return – some clients have already called Moore Accountancy to say “You ARE helping us with this aren’t you!”

 

Well, Chartered Accountants can and will help, but firstly you need to think about whether you even need to be filling a return in. HMRC will continue to send a return request even if your circumstances change if you don’t tell them about the changes to your income and situation.

 

So follow the attached HMRC guidance and think about whether you should be filing or not……

Between 6/4/11 and 5/4/12 were you:

  • a Company Director?
  • Self Employed or in a Business Partnership?
  • an Employee under PAYE claiming expenses or professional subscriptions of £2,500 or more?
  • receiving income over £100,000?
  • receiving more than £2,500 in untaxed income?
  • receiving more than £10,000 in savings and investment income?
  • letting out a property?
  • receiving foreign income liable to UK tax?
  • selling any assets which would be liable to capital gains tax?

If you answered YES to any of these questions, then you should probably be completing and filing a Self Assessment Tax Return and YES – Moore Accountancy, South Manchester Accountants can help you with this.

If however you answered NO to all the questions then call HMRC on 0845 900 0444 and after further clarification with them about your total income and employment status they will decide if you should be taken out of the Self Assessment regime.

Don’t forget that you may be employed, have professional fees to reclaim under £2,500 and can still get tax back on those by completing form P87 Tax relief for expenses of employment. And if you are unsure as to whether you have paid too much tax or not in a year you can always ask HMRC for form P810 Tax Review or of course get in touch with us to help.

And finally, if you want to complete, calculate and file your Self Assessment yourself then try and do it online. You will need to register with HMRC via https://online.hmrc.gov.uk/registration

Good Luck!

 

Moore Accountancy are South Manchester based Chartered Accountants who focus on Individuals, Start Ups and Small Businesses – we provide a variety of services including Self Assessment Returns for Self Employed, Company Directors, Rental Property Landlords and Higher Tax Rated Individuals. Feel free to contact us if you would like help this year.