In the move towards universal digital tax accounts for business, HMRC is trying to force companies to provide bank details on their corporation tax returns.
Although the majority of businesses submit their corporation tax return online, most automatic repayments of corporation tax are made by cheque rather than by electronic payment. CCH Daily notes that the latest research for HMRC shows that businesses on the whole do not provide their bank details when the requirement is not mandatory.
Why therefore would it be an issue if HMRC were to insist that businesses provide bank details.
Sadly it comes down to trust, or rather a lack of trust about what HMRC might do with those details.
Agents are concerned that once HMRC had been provided with bank details ‘they could use them to take future payments without seeking permission’, and there are also concerns about data security of online payments.
Do you trust HMRC with your bank details?
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"
HMRC are untrustworthy and certainly cannot be trusted to adhere to data protection legislation. Unless it is made mandatory (at which point everyone should write complaint to their local MP) best advice is do not provide your bank details to HMRC.
ReplyDeleteWhy is this such an issue when most of those same companies will already have given HMRC the same bank details to take DD's for VAT due from them?
ReplyDeleteThe issue really comes down to if you don't have to give the untrustworthy HMRC bank details, then do not do so. Yes VAT registered companies details are all ready with HMRC for DDs, that's a risk they've had to take, but not all companies are within the scope for VAT...
DeleteHow would HMRC be able to do this? Please explain how this would technically be possible.
ReplyDelete