Under current rules, if a VAT return shows that a repayment is due then HMRC should repay within 30 calendar days of receiving the business’s VAT Return. If the repayment is not authorised within that time limit, the business will receive compensation in the form of a ‘repayment supplement’ being five per cent of the …
Recent years have seen HMRC stepping up its efforts to reduce what is termed the ‘tax gap’ (defined as being the amount of tax that HMRC think should, in theory, be paid in comparison with the amount actually paid) which from statistics published in February for the 2019/20 tax year is believed to be £35 …
Difference between tax planning and tax avoidance Read More »
During the covid pandemic HMRC suspended many of their debt collecting activities. However, as the UK emerges and economic activity resumes, HMRC has restarted their debt collection work intending to contact taxpayers who have fallen behind with their tax payments. From September 2021, they restarted the process of collecting debts using their enforcement powers. These …
The January self-assessment payment deadline is not well timed, falling as it does in a month when people may be already struggling to pay their Christmas credit card bills. However unpalatable the 31 January tax deadline is, it is not one that should be ignored. Taxpayers who are within self-assessment will need to pay any …
The government receives its tax money on different dates depending upon the type of tax charged. Taxpayers taxed under PAYE usually pay their tax bills monthly; the self employed make two Payments on account plus a balancing payment, companies pay nine months and one day after the company year end and ‘Large Companies’ (broadly those …
Under the PAYE ‘Real Time Information’ scheme employers report to HMRC electronically before making any salary or wage payments. To ensure that the right amount of tax is deducted the employer uses the Code issued by HMRC. However, every PAYE Code Number is an estimate, since HMRC cannot guarantee the allowances or deductions included in …
The self-assessment tax return for 2020/21 must be filed online by midnight on 31 January 2022 if a late filing penalty is to be avoided. The exception to this is where a notice to file a return for 2020/21 was issued after 31 October 2021, in which case the filing deadline is three months from …
Payments on account – Who needs to pay and how are they calculated? Read More »
The deadline for filing the 2020/21 self-assessment tax return online is 31 January 2021. If you received income from property, you may need to tell HMRC about it on your return. There are designated property income pages for providing details of your property income. Income from property of £1,000 or less The property income allowance, …
