Wednesday, 9 October 2013

What Does RTI Stand For?

My thanks to a loyal reader who observed that Lin Homer referred to HMRC's flagship RTI (Real Time Information) as "Real Time Income":
"Lin Homer has been interviewed by Jeremy Vine, on his BBC Radio 2 programme at lunchtime today (about one hour and 10 minutes into the programme on BBC iPlayer) and referred to RTI as "Real Time Income".Ooops!You'd think the inventors' could get it right on national radio, wouldn't you"
Oops indeed!

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"

Monday, 7 October 2013

Get Off Your Backsides!

I see that Lin Homer recently told people who had not registered for self assessment in respect of the changes in child benefit rules to "get off their backsides" and do so by 5th October (last Saturday).

As per the Telegraph:
“As it turned out a lot of the people affected have either opted out, over 350,000, or have already opted out, or were already in self-assessment, over 425,000. 
And since we started out advertising another 130,000 have joined. So we think there is about 200,000 people who still need to get off their backsides and do something.

For those people who have not taken action yet … please register for self-assessment. If it proves not to be necessary we can always take you out. 
What we don’t want people is face penalties just because they have been inactive.”

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"

Friday, 4 October 2013

CIOT RTI Survey

In August I noted that HMRC had launched an online survey to find out how difficult the ‘on or before’ rule for reporting PAYE in real time is proving for tax agents and employers. The ‘on or before’ rule requires employers to report PAYE on or before the date of payment to their employees.

The results of the survey will be used by HMRC to help them assess the impact of RTI reporting deadlines, and to determine what changes are needed.

The survey closed on Friday the 20 September, having originally planned to close on 13 September.

By happenstance the Chartered Institute of Taxation (CIOT) also set up their own survey:
"..to supplement the HMRC survey reviewing the use of the relaxation in 'On Or Before' (OOB) reporting by providing an additional comment section through which members can explain the reasons for OOB problems and any suggestions for how to resolve these. 

We want to identify what, if any, obstacles there are to reporting payments on or before they are made to employees and what, if any, permanent arrangement should be sought."
The survey contains five questions and, although there is no apparent deadline, appears to be still running but maybe for not much longer.

You can complete the survey via this link.


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"

Thursday, 3 October 2013

Erroneous Penalty Notice


Accountingweb has an interesting query from one of its readers, in relation to an incorrectly issued £100 late filing penalty notice:
"We submitted a 2011/12 tax return on line 15/06/12 and obtained all the usual acknowledgements. This morning I received a £100 penalty notice for failing to send it on time. 
 
On query it turns out that it has now been cancelled but no explanation was forthcoming. 

I thought these were sent by the computer so forget human error but still the query Why??"
Given that the issuance of the penalty notice would have been automatic where the system determined that the submission was late, but given that the submission was made online and evidently (because the penalty was cancelled) on time does anyone have any thoughts as to why/how the system could have issued an automatic penalty incorrectly?


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"

Wednesday, 2 October 2013

HMRC Online Closure

HMRC have announced that their regular Autumn closure of their online services will occur between 06:00 on Friday 11 October 2013 and 06:00 on Monday 14 October 2013.

The ICAEW Tax Faculty note that if you use commercial software, you will still be able to submit returns. However, you will experience a delay before receiving your online acknowledgements until Sunday 13 October.

The acknowledgement will be sent once the service is restored, and you are asked not to attempt to resend your submission.

For some taxes, if you create a direct debit mandate between 20:15 on Wednesday 9 October and 06:00 on Friday 11 October, you will not be able to view the details until 07:30 on Monday 14 October.

Details are available on HMRC’s website.

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"

Tuesday, 1 October 2013

Disputed PAYE Charges

On 26 September 2013 HMRC published a report into the findings from an analysis of disputed pay-as-you-earn (PAYE) charges associated with RTI reporting:
"We had received feedback that some PAYE schemes have experienced difficulties in reconciling the difference between the tax we say is due, and the tax they think is due."
HMRC set up a dedicated team to identify the cause of the discrepancies.
"It is clear from the analysis that it would be helpful to increase knowledge of how the employer charge is created - both internally in HMRC and externally with our customers and their agents.

Some customers did not understand how HMRC calculated the employer charge, and within HMRC, that lack of detailed knowledge by some contact centre advisors affected responses to customer contact and our handing of referred disputed charges. This meant that some employers were led to believe that their liability and payment had been calculated incorrectly, and so cases were referred incorrectly for review.

Work on developing that knowledge is now underway and we will publish enhanced guidance shortly."
The report goes on to note:
"the number of charges being queried with our specialist team is only a small proportion (less than 1%) of 1.6 million RTI-reporting PAYE schemes......

We have found that the majority of discrepancies have been due to misunderstanding, error or transitional issues as employers joined RTI, and there is no evidence of error in the way that HMRC’s IT systems create the charge. We recommend that employers and payroll service providers check HMRC’s guidance or liaise with t heir payroll software provider where they are unsure. "
Specifically the team found:
• No evidence that HMRC IT systems are calculating the charge incorrectly.
• That there have been some problems associated with the transition to RTI with:
 - Information which has resulted in duplicate employments (resulting in an overstated charge)
 - A small number of submitted FPS’s not being passed to the accounting system in a timely manner resulting in no charge being created, or an understated charge.
• Key causes of discrepancies were:
 - Miscellaneous employer error o Employer Payment Summary (EPS) returns
 - Payments to leavers
 - Timing of updates to HMRC’s Business Tax dashboard (the View Account facility in the PAYE Online account)
 - Issues relating to returns for Construction Industry Schemes
• While not a dispute with the amount of the charge itself, the following have featured in several cases reviewed:
 - The way payments are allocated to debts
 - The information displayed to the employer in the Business Tax dashboard
 - Misunderstanding how employer charge is calculated

HMRC will continue to monitor cases where it is unable to reconcile the amount of PAYE due with taxpayers, and will publish new guidance on how the employer charge is calculated.

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"