Posts by frances

HMRC cracks down on second home sales

HMRC clearly have property owners in their sights as they go for more low hanging fruit; this time they are looking at second home sales. They are writing to 1,500 people who have sold a second home or buy-to-let property in the 2015-16 tax year but not declared a profit on which capital gains tax would potentially be liable. The wording of these letters is still being finalised but they will certailny ask recipients to explain why they have not paid the tax that HMRC’s computer models indicate they owe. Chas Roy-Chowdhury of the ACCA said the HMRC initiative should serve as a
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VAT reverse charge for construction services consultation

HMRC proposes to introduce new VAT rules for construction services which are subject to consultation. HMRC has published a draft statutory instrument for technical consultation together with a draft explanatory memorandum and a draft tax information and impact note. Under the draft legislation supplies of standard or reduced-rated construction services between construction or building businesses will be subject to a domestic reverse charge. This means that the customer will be liable to account for VAT due, instead of the supplier. The legislation will not apply to specified supplies made to customers who are consumers, or to those that use specified supplies to
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HMRC saves public £2.4M by stopping fraudsters

HMRC has announced that it has saved the public over £2.4m by tackling fraudsters that trick them into using premium rate phone numbers for services that HMRC provide for free. HMRC has reported that scammers create websites that look similar to HMRC’s official site and then direct the public to call numbers with extortionate costs in comparison to the low cost and no cost services that HMRC provides. These websites promote premium rate phone numbers as a means of phoning HMRC but these are call forwarding services which connect the unsuspecting to HMRC at a premium rate. HMRC’s has confirmed
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HMRC extends RTI late filing easement until April 2019

HMRC has extended the payroll Real Time Information (RTI) late filing easement until April 2019. Under RTI payroll obligations employers must submit details of payments made to employees on or before the day that wages are paid via a Full Payment Submission. The updated guidance extends the easement, introduced in April 2015 to April 2019. The easement applies where an employer’s FPS is late but all reported payments on the FPS are within three days of the employees’ payday. This easement applies from 6 March 2015 to 5 April 2019. However, HMRC go on to clarify that employers who persistently
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HMRC chasing offshore property tax

We have been contacted by a number of people who have received a letter over recent days from HMRC saying that they have received information through international agreements to exchange tax information that the recipient “may hold or have held property overseas”. They are clearly seeking out individuals who might owe offshore property tax. The letter warns that recipients have until 30 September to declare any overseas income or gains to HMRC before more severe disclosure terms come into play with the Requirement to Correct legislation. The letter also warns that HMRC are receiving such information from more than 100
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Off-payroll working in the private sector consultation

HMRC has launched a consultation on how to tackle non-compliance with the off-payroll working rules in the private sector and are asking for comments on the best way to do this. HMRC estimates only 10% of PSCs that should apply the legislation actually do so, and the the cost of this is projected to increase from £700m in 2017/18 to £1.2bn in 2022/23. This consultation provides an early evaluation of the public sector reform and invites responses on how best to deal with non-compliance in the private sector. This consultation considers a number of potential options for tackling the non-compliance
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200,000 receive back pay as HMRC enforce National Minimum Wage

BEIS and HMRC are urging underpaid workers to complain about National Minimum Wage (NMW) and National Living Wage (NLW) underpayments. Recent figures show that the number of workers receiving the money they are owed has doubled. During 2017/18, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s lowest paid workers. This is an increase on the previous years figures of £10.9 million for more than 98,000 workers. HMRC launched its online complaints service in January 2017 and believes this has contributed to the 132% increase in the number of complaints received over
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Tax refund scams warning from HMRC

HMRC has issued a warning to taxpayers regarding the latest tax refund scams. These scams are targeting individuals via email and SMS messages. HMRC is currently processing genuine tax refunds for the 2017/18 tax year and the fraudsters are sending scam messages which claim that taxpayers are entitled to a rebate. These messages go on to request that they provide their personal and account details in order to make their claim. HMRC is keen to stress that it will only ever inform individuals of a tax refund by post or through their employer, and never via email, text messaging or
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IR35 News – Consultation is launched

The long awaited IR35 consultation for ‘off-payroll’ working in the private sector has been published by HMRC. The sub heading says the “Consultation looks at improving the rules around ‘off-payroll’ working so contractors who work through their own company pay the right tax.” It follows with: “the consultation will specifically look at how to increase compliance with the existing ‘off-payroll’ working rules. These rules mean that contractors such as IT and management consultants who work through their own company but are in practice employed by a third party, pay the right tax as employees.” “Evidence suggests that the taxpayer could be missing
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Changing priorities at HMRC

Over the coming years, the government plans to phase in its landmark Making Tax Digital (MTD) initiative, which will see taxpayers move to a fully digital tax system. However HMRC has shared a statement about how they are prioritising change in the department and as a result some parts of MTD will be delayed. HMRC has acknowledged the challenges in: Exiting the EU, and The ambition to become the world’s most digitally advanced tax authority. While some of the finer details are still being decided, HMRC have announced that, to achieve the above, some aspects of MTD are to be
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