Tag Archives | hmrc

Fetch - HMRC error

HMRC’s “FETCH”

  For the last few weeks we have been using HMRC’s “Fetch” system.  This operates through the commercial tax software we use, and obtains salary and tax details which is already held by HMRC.  The tax software contacts HMRC via an authorisation process, and gets the figures which we would previously have obtained from our […]

Continue Reading
Making Tax Digital

Making Tax Digital

Making Tax Digital is a step towards government tax collection in real time. That may sound fanciful, but we’ve heard ministers and commentators talk about taxing internet transactions as they happen – maybe just wishful thinking. In 2010 the Treasury put forward the idea that employers might pay gross salaries to a government agency, which […]

Continue Reading
MTD

HMRC’s “Making Tax Digital”

MTD is an acronym for Making Tax Digital, HMRC’s proposed way forward. It makes perfect sense – if HMRC could get taxpayers to report their income sooner, let’s say monthly, it leads to the possibility of collecting tax monthly.  This would be a huge improvement over the current system of collecting tax some 9-10 months […]

Continue Reading
Internet Purchase

Internet Purchases and Record-keeping

It’s about evidence.  If you get a tax enquiry, HMRC could ask a question like this: “Please provide supporting invoices for the expenditure listed in Repairs and totalling £3,567.” So you bought the office equipment via Ebay.  You know what it’s for, you know it’s genuinely tax-deductible, but can you find the paperwork? You see […]

Continue Reading
Fairness?

Exceeding the VAT threshold – you forgot to tell HMRC

HMRC should not let taxpayers think that “cover up” costs less than “own up”… Recently a client  – quite accidentally  – didn’t notify HMRC when their income rose above the VAT threshold (currently £81,000) until about six months later. The general rule is that you have to tell HMRC within 30 days from the end […]

Continue Reading
Cement mixer image

Building your own Home – 2

This is the second of two articles about VAT and residential property.  The first article looked at the question we are sometimes asked, “I’m VAT registered, so if I build my own house, can I just put the invoices through my business VAT returns?” This second article looks at whether you should charge (or be […]

Continue Reading

Progress of RTI

Employers, payroll bureaux and accountants should now be conversant in submitting monthly or weekly payroll returns under HMRC’s new “Real Time Information” system.  From our point of view, it is easy enough and for HMRC it’s the obvious way to go.  The controversial issue is the deadline for online filing, in that the online return […]

Continue Reading

Email, spam and malware

Email is a common way of computer viruses, worms and other malware getting onto our computers.  We all use email as an essential tool, and it helps to understand how our email address gets into the hands of “spammers”. Email addresses, Forwarding and using “bcc” If a friend sends us a joke email (“have a […]

Continue Reading

Tax returns filed on Christmas day

HMRC tells us that 1,548 tax returns were filed on Christmas day 2012.  On Christmas Eve, 73 were filed in the last hour before midnight.  HMRC suggests that these late-night filers will experience “inner peace” (HMRC’s words). This could be read in a number of ways – the accuracy of the Christmas Eve late-nighters might […]

Continue Reading

RTI (Real Time Information) – the new PAYE system

HMRC’s new PAYE system, called “Real Time Information” (RTI) will come into effect during 2013.  Under this new system employers will have to submit online details to HMRC each payday. In the old system we have now, as an employer you pay something to HMRC each month, but HMRC doesn’t actually know how much is […]

Continue Reading