Labour is examining plans which would require self‑employed workers and landlords to pay tax every month from April 2030, in a major shift to how millions manage their finances.
Under the proposals, HM Revenue and Customs (HMRC) would calculate monthly payments using an individual’s previous year’s tax return.
The reforms are expected to apply only to those earning above a threshold that has not yet been set.
This will be a monumental clusterfuck!
Today's Uber judgement will have ramifications across the "gig" economy.
One aspect that is of relevance to HMRC is that if an Uber driver is employed, what happens to those drivers working for other other firms who are classified as self employed?
Please feel free to comment.
Tax does have to be taxing.
Tax Investigation Insurance
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully
reimburse your accountants (your tax return agent) fees up to £100,000
if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
“Due to a system error, HMRC had not generated payments on account for 2018/19 for some taxpayers. A number of statements have been issued by HMRC that do not show anything actually due on 31 July 2019.”HMRC has failed to correct the problem, even though it has known about the error for six months.
“If a person has received a statement which does not look correct and does not include second payment that they feel is due, they should contact HMRC immediately. Similarly, you may not receive a statement at all, so it’s worth double-checking.”However, he adds, the safer approach is to make the payment you believe to be due and not necessarily rely on HMRC.
"he understood what it was like to live on a zero-hours contract because he once worked as a £250-per-hour barrister."Quite!
"Because once your tax return is done on a digital basis, in a total revolutionary way, your ability to do nudges and sidecar versions of savings through a tax return will massively go through the roof.Unfortunately, as you can see, he wasn't speaking English and as such no one understood what the fuck he was talking about!
But that is for the future."
"- show you what Business Expenses areThose wishing to participate need to register beforehand, via this link Business Expenses For The Self Employed.
- give you a quick guide as to what commonly is & isn't allowable
- give you help on how to easily work out your motoring costs
- and much more!
There will also be the opportunity to ask the presenter questions. "
"We will show you the different types of Capital Allowances available and some practical examples.This who wish to participate need to register here.
Capital Allowances are tax allowances that can be claimed when you buy items of equipment and are self-employed."
"If you would like to attend this webinar, we will show you the different types of Capital Allowances available and some practical examples. Capital Allowances are tax allowances that can be claimed when you buy items of equipment and are self-employed.Those of you who wish to attend (albeit in cyberspace) are invited by HMRC to register here Capital Allowances For The Self-Employed.
You will also have the opportunity to ask the presenter questions ."
"There are over 4 million employers in the UK. The RTI Pilot is running with just a handful. I gather even by October 2012 the number will have only been increased to a couple of thousand. This is still only about 0.05% of the total. The plans seem to suggest that over 99% of employers are going to be brought into the scheme from April-October 2013. This is a challenging timetable to put it mildly..."Here is Barnyard's press release in full, as ever comments and views are always welcome:
"Over 1,300 employers will join the Real Time Information (RTI) pilot between now and September 2012 HMRC announced today.
Stephen Banyard, Acting Director General for Personal Tax, said:
“RTI is on track and the pilot is going very well. We started in April with just 10 employers and now we’ve successfully received over 1.7 million individual records from 338 PAYE schemes.
“Following the success of the first pilot stage, more PAYE schemes will join the RTI pilot, as planned, and by the end of September up to 1,300 employer schemes will be reporting PAYE in real time.
“We are also seeing external confidence in the pilot and we’ve responded to that by offering more large employers, payroll bureaux, new employers and software developers the opportunity to join the RTI pilot or to expand existing involvement in advance of the launch date in April 2013.”
Most employers will begin reporting PAYE in real time in April 2013. All employers will be routinely reporting PAYE in real time by October 2013, in time for the introduction of Universal Credit.
Notes to editors
1. RTI was launched in April 2012. It was expanded from 8th May as scheduled, when the first of a further 310 PAYE schemes started reporting PAYE information in real time. HMRC is on track for a further expansion in November.
2. The pilot includes a wide range of employers based on size, industry type, location, software use to ensure the pilot represents a wide employer base.
3. More information can be found here.
4. Two free webinars are also available:
5. RTI will support the operation of Universal Credit – the Government’s flagship welfare programme - which brings together means-tested in and out-of-work benefits, Tax Credits and support for housing, and will improve work incentives and make work pay.
- "Real Time Information – an overview” – a 15 minute look at the RTI timetable, main day-to-day changes employers will see, and help and support available.
- “Accurate Employee Information Matters – it can save time and money” - an 11 minute look at examples and the implications of inaccurate employee information, plus tips on how to avoid this and make sure that employee information is recorded accurately.
6. Follow HMRC on Twitter @HMRCgovuk"
Courtesy of the Telegraph, an amusing battle between HMRC and Subway over the need to heat a Meatball Marinara “sub”:"The Subway sandwich is set to be the subject of a High Court battle that could reignite the VAT pasty row that caused the Government such pain earlier this year.
The case revolves around the heated Meatball Marinara “sub”, one of its most popular.If the tax authorities lose the case, it would be another blow to the Treasury and its attempt to close the VAT loopholes on food.
The Subway sandwich is heated up before it is handed to customers, and in the eyes of the Treasury it is therefore “above ambient temperature” and liable for the full level of VAT at 20pc.
A test case was bought by a franchisee based in Huddersfield in 2010, who claimed that all of its toasted subs were heated in order to comply with food safety legislation.
It argued that the heating process was needed to stop the Marinara sauce from being “thick and glutinous”. The franchisee’s legal team employed a professor of surface metrology (the measurement of heat and surface changes) to measure the temperature of the sandwiches and the “ambient” temperature of the shop.
In 2010 a judge ruled in the tax authorities’ favour and Subway has been forced to carry on charging VAT on its toasted sandwiches.
However, a group of more than 100 Subway franchisees is appealing the decision and the case will be heard at the Upper Tribunal for tax, in the High Court next month.
Their solicitor, Dipak Jotangia, a partner at Diss Solicitors, said that the Government’s decision not to press ahead with the pasty tax gave them confidence they would win the appeal."
"I was gemused to read an article by Tony Hetherington, in which he lambastes HMRC's executive structure.Fortunately for HMRC it seems that it won't have to lie very much longer about Clasper's other roles.
One particular issue he raised concerned Mike Clasper (the semi invisible Chairman of HMRC). Hetherington asked HMRC whether anyone represents "ordinary PAYE taxpayers" on HMRC's board.
The answer from HMRC was rather interesting in that, for reasons best known to themselves, HMRC lied.
Quote:
"Our chairman is also chairman of Which?"That's grand, except that Clasper isn't chairman of Which?
Clasper is not even a member of its governing council, instead he chairs an offshoot company ( Which? Limited) that handles the commercial activities of Which?, but not Which? consumer campaigns.
Why did HMRC lie about something that could be (and was) so easily checked and proven to be wrong? "
"Anon: Ken One of the major problems at HMRC is lack of continuity or consistent policy direction at the top. There is nothing wrong in principle with bringing in people from the private sector to provide management expertise but the reality is that the three year contracts under which much of Excom is employed results in inevitable leadership churn.What with Homer being new (and not exactly a career "success story" based on her past) Hartnett leaving and Pavitt (as per above) possibly coming the end of his contract this year, this additional departure from the high command leaves very few experienced people on the bridge of the already fatally holed HMRC.
For example, I believe the CIO Phil Pavitt's engagement is due to expire in September 2012 and he will probably be leaving HMRC this year. This means that HMRC may have a new CIO right in the middle of one of the most crucial computer projects in its history. I find it difficult to believe that Pavitt's replacement will be able to avoid the temptation to tinker with his predecessors technical strategy and may even want to do things radically different.
The musical chairs at Board level might be great for for ambitious career free booters keen on lucrative one off gigs that add notches to their CVs but it breeds a corrosive short termist view within the organisation which means long term planning is almost impossible.
Ken: You have hit the nail on the head, in fact the problem wrt continuity is a blight that affects many gov departments (and indeed the private sector) ie:
"Five year projects being run by two your managers".
Specifically a project (eg restructuring or IT implementation) that will take many years to implement and bed in requires consistent high quality leadership.
"High quality" leaders (or rather those who are ambitious) have two year mindsets (always looking for the next step up the ladder).
These people take on projects like this on the explicit understanding that they will be promoted in two years, if they make a "success" of it.
The best way to make a "success" is to change whatever the previous managers did, blame him/her for all cock ups, and implement a 100 days "quick wins" policy etc."
