Taxman cracks down on inaccurate returns

Taxman cracks down on inaccurate returns

HMRC issued a record number of fines last year to taxpayers who made mistakes on their returns. The Revenue imposed 143,000 penalties on people who filed inaccurate information because it deemed them not to have taken “reasonable care” - nearly three times the 55,000 fines levied in 2012. Accountants also warned that people were being penalised for oversights such as forgetting to declare the interest on an old savings account or omitting a health insurance policy received through work. The penalty figures also showed a six-fold increase in the number of fines for deliberate understatement of income, from 5,000 in 2012 to nearly 30,000 last year.

Get it right first time. The number of fines is only going to increase.

Allow us at Stephens to review your tax returns and avoid the simple mistakes which arise time after time. Ignorance is no defence.

Stephens Accountants

Southgate Business Centre,

32 Gillygate,

Pontefract.

WF8 1PQ

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Taxpayers seeking insurance

Taxpayers seeking insurance

The Times reveals that an increasing number of people are taking out insurance to protect themselves against the costs of being scrutinised by HMRC. Last year saw hundreds of thousands of people receive “inquiries” from the Revenue about the figures in their tax return, ranging from a simple clarification request to a full-scale scrutiny of their tax affairs. Kevin Igoe, MD of insurance provider PFP, says: “We have had 3,000 to 4,000 more inquiries this year, from businesses and individuals, for insurance to cover accountancy fees should they be investigated by the tax office.” Mr Igoe says the insurance will cover the accountancy costs of dealing with an inquiry, which can be up to £70,000.

Source: The Times (28/01/2017)

We at Stephens offer to our clients a Tax Enquiry Service, whereby for 8% of our annual fees, we will cover all time costs of a HMRC enquiry into your business or personal tax affairs,VAT & Payroll. We handle the enquiry to its conclusion.

Stephens Accountants

Southgate Business Centre,

32 Gillygate,

Pontefract.

WF8 1PQ

Telephone: 01977 791757

FAX: 01977 795366

E-mail: info@stephensaccountants.co.uk

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Freelancers race to file on time

Freelancers race to file on time

Research by the Association of Independent Professionals and the Self Employed suggests freelance workers are facing an uphill struggle to fill their annual self-assessment tax returns before this year’s deadline. The analysis indicated contractors spend an average of two days completing their tax return, and lose a working day trying to get through to HMRC. “There needs to be a much better line of communication between HMRC and self-employed people,” said IPSE chief exec Chris Bryce. Financial Times (31/01/2017)

We at Stephens have a dedicated agent helpline to cut through the waiting times should we need to speak to HMRC on your behalf. A day wasted can cost more than our fees, and we file the information right first time.

Stephens Accountants

Southgate Business Centre,

32 Gillygate,

Pontefract.

WF8 1PQ

Telephone: 01977 791757

FAX: 01977 795366

E-mail: info@stephensaccountants.co.uk

Website

HMRC to scrap yearly tax return

HMRC to scrap yearly tax return

"Getting rid of the annual tax return by 2020 could save HMRC over £8bn per year, the authority has said. Under the proposals, part of its Making Tax Digital project, taxpayers will keep the Revenue updated online on a continuous basis, rather than filing a yearly return. Jim Harra, HMRC's director general, customer strategy & tax design, said: "The appetite for digital services is growing and traditional paper-based processes make no sense in the 21st century where the vast majority use digital services. Making Tax Digital will help businesses to get their tax right first time; it will help reduce the likelihood of errors." The Daily Telegraph (01/02/2017)

This does not mean less work for taxpayers and small businesses. Continuous basis means not just filling the forms in once a year but rather reporting all business income and expenditure quarterly or possibly monthly. Neither does producing and submitting your accounts electronically guarantee accuracy or indeed a better understanding of the tax legislation. Rubbish in Rubbish out.

We can help smooth the transition to digital tax returns and accounts with market leading software solutions and support.

Stephens Accountants

Southgate Business Centre,

32 Gillygate,

Pontefract.

WF8 1PQ

Telephone: 01977 791757

FAX: 01977 795366

E-mail: info@stephensaccountants.co.uk

Website