PAYE, CIS, Entrepreneurs Relief, Floods, Scams & Tax Avoidance

Apr 5, 2014   //   by Ralph   //   Latest News, Scam Warnings

PAYE on YouTube

HMRC have published a three-step guide to help employers submit their final 2013/14 PAYE submission successfully on YouTube. I imagine it will be easy to find as PAYE generally does not provide much entertainment.

Quicker CIS repayments for Limited Companies?

Ever since the processing and repayment of tax deducted under the Construction Industry Scheme for limited companies was centralised in 2010/11 it has been a long drawn out process to obtain repayment from HMRC. It improved little in the following two years. HMRC due to the introduction of RTI can now commence repayments earlier and a target of fifteen days to process claims is now considered achievable

Entrepreneurs relief – don’t lose it

When you sell your business you want to obtain a Capital Gains Tax rate of 10% rather than the usual rates of 18% and 28%. This can result in huge tax costs if it is not dealt with properly. Common mistakes include rent being charged to the limited company for assets held outside the company; the company having significant investment assets; holding shares that do not qualify as they are not ordinary shares and do not carry voting rights. Of course the claim must be made on time, which is one year after the 31st January in the year after the tax year in which the disposal has been made.

HMRC’s flood helpline launched

HMRC have set up a helpline to assist those affected by the floods. We were very lucky here but in case you were affected the number is 0800 90479000800 9047900. HMRC will agree instalment arrangements, give practical advice where business records have been lost, suspend debt collection and cancel penalties. How long this will last given the current good weather I don’t know but it may be worth contacting them if you have suffered as a result of the floods.

Bogus emails from HMRC

If you get an email claiming to be from the tax office telling you that you have a tax refund awaiting your claim it will be a scam. HMRC never advise of tax refunds by email, only ever by letter. If you do receive one of these it should be sent to phishing@hmrc.gsi.gov.uk and you should then delete it permanently.

Are you a really a car dealer?

It seems difficult to believe that someone though that a tax avoidance scheme involving registering as a car dealer as a “side-line” and selling vehicles for minimal profit to show that capital of up to £10,000 was required would work. The finance costs for this loan of up to £10,000 were £5 million

(yes that’s right I said £5 million) creating a huge loss which was offset against other income, therefore obtaining a substantial tax advantage. The finance costs were described by the Judge as “absurd”. The details of the case are far more intricate, and above is just a summary, but surely it is best sometimes just to stick to playing records.

Ralph Robson can be contacted at his office at TA Gittins & Company Chartered Accountants on 01978 26484601978 264846 or via email below. If you would like a particular issue covered in this article please contact Ralph on ralph.robson@tagittins.co.uk

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