MTD penalties – soft landings, light touches and hard lines

Making Tax Digital for VAT (MTD) is now live, and some businesses may find that they struggle to get to grips with the new requirements it brings.  It is therefore essential to have a clear understanding of how HMRC might apply penalties under MTD and what businesses should do if they encounter problems or things go wrong. Credit: Google local guide 박재영 Read the full article at Accountancy Age. ...
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Young people targeted with phone tax scams

HMRC is warning young adults who may have less experience of the tax system to be especially vigilant about tax refund scams via smartphone, as fraudsters ramp up activity after the self assessment season. Photo by Adrianna Calvo from Pexels During April and May, fraudsters regularly blitz taxpayers with refund scams by email or text pretending to be HMRC. Criminals do this to coincide with legitimate rebates being processed by HMRC. Read the whole article on Accountancy Daily. ...
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Businesses warned on winding up perils over unpaid tax

Photo by Tim Mossholder from Pexels HMRC applied to shut down 4,160 businesses because they had fallen behind on their tax payments in 2018 with financial problems being exacerbated by a late payment culture. Based on analysis of HMRC’s winding up petitions by Funding Options, the tax authority is still being too aggressive in its approach to shutting down businesses, particularly given the tough trading conditions caused by Brexit uncertainty and slowing global economic growth. Read full article at Accountancy Daily. ...
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Business must plan to avoid Easter BACS payment delays

Photo by Expect Best from Pexels With Easter 2019 just around the corner, business owners are being urged to plan ahead if they are to avoid missing payments to staff and suppliers over the long Easter bank holiday weekend, according to advice from Pay.UK, which acts as the single operator for all UK retail payments. Pay.UK, which is  the retail payments authority behind direct debit and Bacs direct credit, is highlighting the need to take action now, to avoid payment delays in a few days’ time. Read the full article at Accountancy Daily. ...
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HMRC trials payroll changes to earlier year updates (EYU)

Photo by Anthony from Pexels In a bid to improve payroll reporting, HMRC is running a trial aimed at simplifying the process for reporting corrections by extending the use of the real time information (RTI) full payment submission (FPS) Employers can continue to report revised year to date payroll data after the current deadline of 19 April, following the end of the tax year, making sure HMRC systems with employer payroll records are aligned. Some payroll software already supports this. Read the full article at Accountancy Daily. ...
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HMRC sets out provisional rules on IR35 for private sector

HRMC has published preliminary guidance on how to prepare for changes to the off-payroll working rules from 6 April 2020, even though the consultation on the extension of the rules to the private sector has yet to close for comment. The consultation, which closes on 28 May, is looking at how HMRC can ensure the off-payroll working rules first introduced in the public sector are suitable for the large and diverse sectors in which the new rules will need to be operated. Read full article at Accountancy Daily. ...
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Lifetime allowance for pensions increases to £1.05m

The standard lifetime allowance for pensions has increased by £25,000 in line with CPI inflation to £1,055,000 for the new tax year from 6 April . The 2.4% rise, based on September 2018 CPI, brings the lifetime allowance to £1,055,000, up from £1,030,000 from 6 April 2019 for the 2019/20 tax year and is the lifetime limit for pension savings liable to standard tax rates before a higher tax charge is made. Read more on Accountancy Daily ...
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Payslips mandatory for all workers from 6 April 2019

Almost 300,000 workers who previously did not receive a payslip will now do so starting from this week, including those on casual and zero-hours contracts, as part of the government's Good Work Plan reforms. A further 120,000 agency workers will benefit from the scrapping of the Swedish Derogation, which meant certain agency workers were paid less than full time staff, although this will not come into force until 2020. Read the whole article at Accountacy Daily ...
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