HMRC Campaigns

13 June 2011 HMRC announce new campaigns to target private tutors and e-marketplace sellers.

HMRC, buoyed by the use of new “cutting-edge tools such as ‘web robot’ software”, announced two new campaigns to target private tutors (people with a secondary income from providing tuition or coaching) and E-marketplace traders (people who use e-marketplaces to buy and sell goods as a trade or business).

These campaigns are due to start sometime over the next year, though precise dates and details have yet to be

The emphasis seems to be to ensure that targets declare and pay tax on all their earnings, though in doing so other tax obligations and liabilities may be triggered e.g. VAT Registration, PAYE registration & operation etc,.

HMRC have not yet announced any amnesty period, though current legislation promotes voluntary declaration and co-operation by potential defaulters, by imposing lenient, deferred or no fines. By contrast deliberate concealment and non co-operation will result in large fines and potential imprisonment.

HMRC will be applying increasingly sophisticated tools and patterning software to search data from an increasingly wide range of sources.

HMRC are also becoming more aggressive both in the sophistication of their tools, the increasing volume of campaigns being launched, the tactics being used (including short notice launches), and their use of language e.g. calling potential defaulters “tax cheats”.

A* Accounting Services can help you minimise the risk of back-tax, interest, fines and penalties; we have done so successfully for many clients. We will also help you plan your tax to improve compliance and reduce your worries.

If you feel at risk call Wisdom on 07962 144901, call the office on 01753 840040, or email us at info@astaraccounting.co.uk

Summer 2011 VAT Registration Campaign

HM Revenue and Customs (HMRC) today announced draft plans to target VAT “rule breakers” from Summer 2011. Their campaign will “focus on individuals and businesses who are trading above the VAT threshold but who have not yet registered for VAT.” The initiative is first to be “discussed with interested parties...before launching the campaign later in the summer.”

“HMRC encourages anyone who has unpaid tax to come forward and make a voluntary disclosure.” Making a voluntary disclosure and co-operating with HMRC staff will result in reduced penalties and fines if you are subject to an investigation.

Need help? Call Wisdom on 07962144901

Want to contribute to the debate? Either email HMRC directly Jan.Marszewski@hmrc.gsi.gov.uk , or email A* Accounting Services via Wisdom@astaraccounting.co.uk - Wisdom Da Costa B.Sc, FCCA, AMCT is an ACCA (taxpayer) representative on HMRC's Working Together group in Reading

NB The VAT threshold is currently £71,000 turnover on a rolling annual basis. In previous years it was 2006/07 – £61,000; 2007/08 – £64,000; 2008/09 - £67,000; 2009/10 - £70,000.

HMRC advice note http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=419593&SubjectId=36

HMRC Announce attack on Plumbers – March 2011

HMRC this week announced their latest campaign to crackdown on “tax defaulters”. The new campaign will target Plumbers and is called the Plumber’s Tax Safe Plan (PTSP).

HMRC are offering Plumbers an “amnesty” or “Fresh Start” if they come clean before 31 May 2011; but they would have to report the actual earnings AND pay tax due by 31 August 2011.

Need help? Call Wisdom on 07962 144901 or email him at wisdom@astaraccounting.co.uk

More information at http://www.hmrc.gov.uk/trades-disclosure/guidance-pack.pdf



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