Category Archives: News

Will quarterly reporting lead to quarterly payments?

Within a few years, many taxpayers that are presently required to file a tax return, and most businesses, will be required to file quarterly data with HMRC using the Treasury Making Tax Digital portal.

In which case, the present annual filing obligations will be replaced by quarterly filing obligations.

 

Paying tax in arrears

Apart from salaried or waged individuals who have their tax and NIC liabilities deducted at the time they are paid self-employed traders and companies pay their tax in arrears.

For example, for the tax year 2021-22, individuals registered for self-assessment pay two estimated instalments – based on previous year’s profits – January and July 2022: and any balancing amount 31 January 2023.

Companies pay their corporation tax...

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Employing students in the summer holidays

If you employ students to manage your staff needs over the summer break period, you will need to add them to your payroll and apply PAYE and NIC rules.

 

Students should be advised that they will pay tax and NIC if:

  • they earn more than £1,048 a month on average, and
  • pay NIC if they earn more than £190 a week from 6 April 2022 to 5 July 2022 and more than £242 from 6 July 2022 to 5 April 2023.

 

Students can also apply for a possible tax refund if they work for part of a tax year.

Students who normally live and study in the UK but work abroad during the holidays will need to pay:

  • UK tax on...
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Till fraud

The scope of tax fraud seems to be taking on new forms according to a recent press release issued by HMRC.

The latest attempt involves the use of software to suppress sales recorded at point of sale. The systems even warrant a new acronym, ESS.

Electronic Sales Suppression (ESS)

Businesses involved in making, supplying or promoting ESS systems that help users hide or reduce the value of till sales, now face fines of up to £50,000 and criminal investigations. Users also face fines as HMRC increases efforts to target the tax evasion practice.

HMRC investigators hit the road

On 18 May 2022, thirty businesses were visited, including shops, takeaways and restaurants, across nine counties to tackle ESS and two men...

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Stamp Duty refund fraud

HMRC have noticed an increase in claims for Stamp Duty refunds that are incorrect

In fact, new homeowners are being warned about cold calls from rogue tax repayment agents advising them to make speculative Stamp Duty Land Tax (SDLT) refund claims, which could leave them with large tax bills.

Claims are failing HMRC checks

The warning comes after a recent spate of Stamp Duty refund claims to HMRC failed to meet specific criteria.

The agents have been known to call new property owners after finding them through Land Registry records and property search websites, promising money back on ‘unknowingly overpaid’ Stamp Duty.

Recent analysis undertaken by HMRC suggests that up to a third of claims for ‘multiple dwelling relief’ refunds...

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