The Real Time Information system is due to start the testing phase in April 2012 which, if successful will lead to a phased roll out in 2013. October 2012 will see a second test. The largest concern among Members of Parliament and professional bodies, is accuracy of data held by HM Revenue & Customs. (more…)
The complicated Pay As You Earn system prevents two thirds of small businesses hiring employees, according to an Inuit survey. The increased burden of PAYE administration has resulted in hesitancy among small employers, with some being unaware of the revised timetable for PAYE.
Almost half of (more…)
Adults who are paid the minimum wage will benefit from an increase of 15 pence, taking the hourly rate to £6.08. The Low Pay Commission recommended the increase, which the coalition government will implement from 1st October 2011. The minimum wage will also increase for 16 and 17 year olds, 18 to 20 year olds and apprentices.
The director general at the British Chamber of Commerce, David Frost, has warned that the increase (more…)
HM Revenue & Customs has revealed a five year business plan outlining new initiatives to help businesses and to improve commitment to transparency. According to the Institute of Directors who carried out a survey of IoD members, there is still a long way to go for HMRC to reduce the administrative burden on business.
Just under a third of the businessmen surveyed said that their dealings with HMRC would lead to them advising a person not to start up a new business. One area of taxation that has lead to this decision is the Pay As You Earn and National Insurance, which is thought to be overly complex and needs to be simplified. As HMRC becomes increasingly computerised, and continues to do so, the administration should continue to reduce for businesses.
The survey also revealed that many business owners found the taxation rules hard to understand and had difficulty obtaining the relevant information from HMRC. For many businesses this is one of the main reasons for using accountancy services, to avoid incurring penalties and late payment charges through misunderstandings of the rules. Over a third of businesses interviewed admitted that it is difficult to obtain relevant information from HMRC.
When questioned on the areas they thought that the Office of Tax Simplification should concentrate on, half said that PAYE and National Insurance while a third wanted the employee benefits system to be looked at. To avoid costly mistakes which could seriously affect your business, outsource your administration to low cost accountants who will maximise your return on investment.
As HM Revenue & Customs works hard to collect £2 billion in unpaid tax from 2008-09 and 2009-10, accountancy firms have noticed that they are seemingly ignoring the latest self assessment tax returns submitted by taxpayers. Many of the tax calculations which are being received by taxpayers don’t take into account the information already provided in tax returns.
HMRC appear to be basing current year tax codes and income on (more…)
Tax calculations issued to taxpayers incorrectly are causing a massive backlog of correspondence. Up to 13 weeks of customer letters remain on hand, leaving taxpayers to deal with incorrect tax codes and calculations of underpaid tax.
An initial amount of 45,000 tax calculations were issued to taxpayers, either informing of a repayment of tax due to the taxpayer, or demanding tax which has been underpaid. Many calculations are incorrect leaving taxpayers trying to contact HMRC in an attempt to (more…)