Reporting tips for building contractors

Reporting tips for building contractors

HMRC recently published a list of helpful reminders regarding the submission of monthly returns to HMRC. This article lists some of the points highlighted. Each month contractors must send HMRC a complete return of all payments made to subcontractors within the scheme in the preceding tax month. This is regardless of whether the subcontractors were … Read more

About-turn, you can use spreadsheets

About-turn, you can use spreadsheets

HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced. Bowing to pressure from industry, the accountancy profession and Parliamentary committees, HMRC has now agreed that you can use … Read more

Changes to rent-a-room relief

Changes to rent-a-room relief

A new test is to be added to the qualifying criteria for rent-a-room relief from April 2019. The test will require that the individual or individuals in receipt of income – the home owner(s) – will need to share occupancy of the residence in question with the individual whose occupation of the furnished accommodation is … Read more

Making Tax Digital

Making Tax Digital

A reminder that from April 2019, HMRC’s much vaunted Making Tax Digital (MTD) scheme will apply to certain businesses. The April 2019 launch will only apply to VAT registered traders. More specifically, MTD will apply to businesses who have a turnover above the VAT threshold – the smallest businesses will not be required to use … Read more

Construction drawn into VAT reverse charge process

Construction drawn into VAT reverse charge process

It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”. Their preferred method for dealing with this abuse is to make customers responsible for … Read more

200,000 receive back pay

200,000 receive back pay

In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they’re owed by employers has doubled after interventions by HMRC. According to latest figures, in 2017-18, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s … Read more

What to do if you can’t pay your tax

What to do if you can’t pay your tax

HMRC will consider extended options for settling your outstanding tax bill. The key is to contact HMRC, explain why you can’t pay on time, and discuss how you can settle any outstanding liabilities. If you can’t pay before the deadline, call the Business Payment Support Service. Anyone can use this service, not just businesses. Business … Read more

Offshore tax evasion

Offshore tax evasion

From 1 October 2018, HMRC will be gaining access to information from tax havens that will enable it to identify UK citizens with undisclosed offshore assets, and by inference, undisclosed UK income and taxable gains. Why does this matter? It matters because HMRC has introduced new legislation called the Requirement to Correct which will dramatically … Read more