With the deadline for Real Time Information (RTI) looming ever closer Julie Palmer, a partner at Begbies Traynor, has warned that the new system (coupled with HMRC's more "assertive" approach to tax debt) may tip some companies over the edge.
She is quoted in the Telegraph:
"We don’t know if there will be political pressure to support struggling companies or to be tougher on them and collect outstanding taxes. But what this will give HMRC is the visibility to spot arrears more quickly and to react more quickly.”She added that the change is “one of the most fundamental changes to the PAYE tax system since 1944”.
“At a time when businesses are already feeling the strain, the potential for quicker demands of additional payments could potentially push them over the edge."Additionally companies will need to invest in new payroll software, or update their current systems to comply with RTI; these costs have to be borne by the companies.
Alarmingly around 25% of companies recently surveyed are "blissfully unaware" that RTI is coming.
There will be tears before bedtime!
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
Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to read about: Tax Investigation for Dummies
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"
Considering these businesses are taking the money from their employees pay cheques why is it a bad thing that hmrc will be able to chase paye arrears quicker?
ReplyDeletealso, when a debt is pursued quicker it doesnt have the the chance to grow or incur interest or penalties
As long as the information is up to date and they are chasing the right amount of money at the right time?
DeleteDo you have that much confidence either in their IT or their ability to get the figures right? Their track record is appalling and the ability of the system to be able to perform properly is very low.
Do you work for them - be honest now, big bruvver is watchin'!?