These HMRC updates are hot off the press
Today’s Blog is a round-up of the latest news on tax and other changes that might affect you or your business.
Minimum Wage
It’s nearly October and the Minimum Wages rates change on 1st October 2013 to:
- £6.31 – the main rate for workers aged 21 and over
- £5.03 – 18-20 year old rate
- £3.72 – the 16-17 year old rate for workers above school leaving age but under 18
- £2.68 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
Last year, only the over 21s and Apprentices saw an increase in the NMW. This year, all of the rates have increased
Landlords’ Amnesty
Landlords that rent out residential property and that have thusfar failed to inform HMRC of their rental income, are being given the opportunity to come forward and set their tax affairs straight, before HMRC comes after them.
As part of HMRC’s Hidden Economy “Let Property campaign”, landlords who realise they owe tax, whether it be through ignorance or deliberate evasion, can own up to the tax office without incurring any additional penalties or interest.
Marian Wilson, head of HMRC Campaigns, said: “All rent from letting out a residential property or holiday home has to be declared for income tax purposes. Telling us is simple and straightforward. We appreciate some people will have made honest mistakes, and some may not be fully aware that the rent from a property is taxable, and that is why it always makes sense to talk to us so we can help. It is always cheaper to come forward voluntarily and pay the tax you owe, rather than wait for HMRC to come calling”.
HMRC top the “Rage Index”
As recently reported in the Daily Telegraph, HMRC has been named and shamed in the UK’s first nationwide Telephone Rage Index as the organisation most likely to waste people’s time on the telephone.
One of people’s biggest pet hates is automated phone menus that force them to plough through dozens of options before reaching a human being, with many of us try seeking out shortcuts that help cheat the system. By a process of analysing the amount of web traffic to web pages that offer shortcuts for particular organisations, consumer website PleasePress1.com has compiled an index of the most frustrating companies to call in the UK.
HMRC comfortably won the gold medal, with nearly 40,000 page visits last month alone. They also top the pole of menu options with a staggering 421 options across just six services. Ford Motor Company comes in second, followed by Lloyds TSB in third place. PleasePress1.com has calculated that this additional “navigation time” is costing UK consumers an incredible £100million in phone charges every year.
HMRC clampdown on Directors
HMRC is clamping down on company directors after launching a review to make sure they are submitting their personal tax returns and are is writing to directors to inform them that they face penalties if they have failed to notify HMRC of chargeability to tax within six months of the end of the tax year involved.
Directors who receive the HMRC letter have been asked to provide them with details of any full or part-time employments from 6th April 2006 to 5th April 2012 and particulars of any other sources of taxable income, as well as dividends taken.
HMRC’s stated: “This is part of our day to day work, reminding customers of their obligation to notify us of any untaxed income due by the 5th October”.
HMRC announces further relaxation on RTI deadline
HMRC have finally agreed that some small employers who pay employees weekly, may need longer to adapt to reporting PAYE information in real time. They have therefore agreed a relaxation of reporting arrangements for small businesses for a transitional period until April 2014.
This relaxation means that employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month in which the payments are made.
New rights if you’ve had something seized by Customs
New Rights if you have something siezed by customs
If you are unfortunate to have something seized at the airport by HMRC’s Customs Service and you think they are wrong, for any reason, up to now your chances of getting the item back have been very slim and certainly not without a great deal of effort time and cost. An example of this might be an expensive piece of jewellery or a camera that Border Force suspect has been bought duty and tax free abroad and you don’t have a receipt.
Well from now on under the terms of a recently issued notice by HMRC (Ref; 12A) you can instantly appeal without cost. If you’ve had something seized by HMRC and you do not accept there was a legal right to seize it and/or you want them to consider returning it, you have three options. You can:
- Challenge the legality of the seizure by completing a Notice of Claim to HMRC at the time or
- Write to HMRC asking for the thing to be returned to you even if you accept it was seized legally. This is called restoration.
- Do both of the above at the same time by challenging the legality of the seizure and asking for the seized thing to be returned in the meantime
Well that’s it for now, I will bring you further interesting titbits, as and when they arise
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David Jones is the Senior Partner and Founder of Morgan Jones & Company. Born in Liverpool and an Accountancy graduate of the University of Wolverhampton, David spent twenty years working for the Customs & Excise in London then Shrewsbury before starting his own business. David's depth of knowledge of the UK tax system and his ability to communicate this learning has seen Morgan Jones & Company grow into Shropshire's most respected Accountancy Practice.