HMRC App for Tax Credits

 

More than 33,600 tax credits customers use HMRC app to renew

More than 33,600 customers have successfully used the HMRC app to renew their tax credits claim so far this year, a 39% increase on last year, HM Revenue and Customs (HMRC) has revealed.

Tax credits help working families with targeted financial support, so it is important customers act now to renew before the quickly approaching 31 July deadline to ensure their payments don’t stop.

HMRC is encouraging more customers to use the highly-rated app as it is a quick and easy way to get this vital job done.

It is free and simple to use and allows direct access to tax credits at the touch of a button. There are many benefits of the fully secure app, which can be used on any smartphone or tablet, at any time, eliminating the need to call HMRC and helping customers to save time and money.

Customers using the HMRC app can:

• renew their tax credits
• make changes to their claim
• check their tax credits payments schedule, and
• find out how much they have earned for the year

There are nearly 259,000 tax credits app users, who have used the app more than 10 million times in the last year to do things like check their payment dates and amount.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

“Time is running out for our tax credits customers to renew their claims. It’s quick, easy and free to complete a renewal on the HMRC app – search ‘HMRC’ in your smartphone app store.”

Customers can download the app at the App Store or Google Play. Online reviews at both indicate plenty of satisfaction with the app’s performance, as it currently holds a score of 4.5 stars on the App Store, and 4.7 on Google Play.

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

Once signed into the app after initial download, there are options for users to set up and select facial recognition, a fingerprint or a 6-digit pin to get fast and fully secure access to their details.

Customers can also renew their tax credits and manage their claims online on GOV.UK. Customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from HMRC.

The UK Government has recently announced a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, to help with the cost of living. If receiving tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by the autumn. Customers do not need to contact HMRC or apply for the payment.

More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

As the deadline for renewals approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers. HMRC is warning people that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed. HMRC is also urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name. The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.

Tax does have to be taxing.

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HMRC's Ever Changing FOI Response - Something Stinks There!

 

here’s a little mystery involving HMRC insisting only two weeks ago that it wasn’t investigating *any* ministers over their tax affairs

— Jim Pickard (@PickardJE) July 10, 2022

Tax does have to be taxing.

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Tax Gap Steady at 5.1%

 

Statistics published today (23 June) by HM Revenue and Customs (HMRC) reveal the estimated tax gap for the 2020 to 2021 tax year is 5.1% – the second lowest recorded percentage – and is unchanged from the previous year.

The annual Measuring Tax Gaps publication estimates the difference between the total amount of tax expected to be paid and the total amount of tax actually paid during the financial year. The majority of taxpayers pay the tax that is owed.

In monetary terms, the tax gap for the 2020 to 2021 tax year is £32 billion. At 5.1%, there has been no change in the percentage tax gap compared to the previous year, although the monetary value has fallen by £2 billion from £34 billion in the 2019 to 2020 tax year.

The total tax due to be paid fell from £672 billion in 2019 to 2020 to £635 billion in 2020 to 2021 due to the economic impact of COVID-19.

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said:

“The vast majority of taxpayers and businesses paid the correct amount of tax owed. We want to help everyone to get their tax right as the revenue we raise helps fund our vital public services.”

The estimate for the 2020 to 2021 tax gap is the best assessment based on the evidence available at this time. There is some uncertainty for the tax gap estimates for the first year of the pandemic and estimates could be subject to revisions in future years.

HMRC has published tax gap estimates since the 2005 to 2006 tax year. There has been a long-term reduction in the overall tax gap from 7.5% in 2005 to 2006, to 5.1% in the 2020 to 2021 tax year. The reduction is a result of the government’s action to help taxpayers get their tax right first time, whilst bearing down on the small minority who are deliberately non-compliant.

Further findings for the 2020 to 2021 tax gap publication show:

• the tax gap for Income Tax, National Insurance contributions and Capital Gains Tax is 3.5% (£12.7 billion), representing 39.5% of the total tax gap by type of tax
• the VAT gap shows a strong downward trend falling from 14.1% in 2005 to 2006 to 7.0% in 2020 to 2021
• the Corporation Tax gap reduced from 11.5% in 2005 to 2006, to 9.2% in 2020 to 2021, reaching a low of 6.5% in 2011 to 2012, remaining broadly stable since 2014 to 2015
• at 48% (£15.6 billion), small businesses represent the largest proportion of the tax gap by customer group, followed by criminals at 16% (£5.2 billion)
• individuals account for 8% (£2.5 billion) of the overall tax gap and, at 5% (£1.5 billion), wealthy individuals have the smallest tax gap by customer group
• failure to take reasonable care (19%), criminal attacks (16%), non-payment (15%) and evasion (15%) are the main reasons for the tax gap by behaviour.

HMRC publishes the tax gap because it believes it is important to be transparent in its work. The data helps build trust in HMRC’s ability to support taxpayers in meeting their obligations and pay the tax they owe. It also helps inform the future work and priorities for HMRC, and where it can make the greater difference for taxpayers.

HMRC is the only tax authority in the world that measures and publishes an annual tax gap in such a comprehensive way – covering a single tax year for all the taxes, levies and duties it administers.

Each year, HMRC estimates the tax gap for direct and indirect taxes based on the latest available information. HMRC may revise previous years’ tax gaps as more data becomes available in order to show the long-term trend.

Tax does have to be taxing.

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Print and Post Service Unavailable

 

HMRC have asked us to let people know access to their Print & Post online forms is currently unavailable or intermittent and has been so since Mon pm, due to a technical issue. Customers will get a ‘Service Unavailable’ message when trying to access affected forms. 1/x

— CIOT (@CIOTNews) June 8, 2022

Whatever happened to MTD?

Tax does have to be taxing.

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• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
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HMRC Warns People To Stop Using Tax Scheme Promoted by Peak PAYE Ltd

 

HMRC has warned individuals using a tax avoidance scheme provided by Peak PAYE Ltd to withdraw from it and to contact HMRC as soon as possible.  

This latest publication of a tax avoidance scheme promoter comes after HMRC recently used new powers for the first time as part of its Don’t Get Caught Out campaign.  

The named tax avoidance promoter is Peak PAYE Ltd, of 86-90 Paul Street, London, EC2A 4NE.    

By paying contractors National Minimum Wage, and then paying the remainder of the contractors’ wage disguised as a financial option or as a salary advance, this promoter promised its users that they can avoid paying National Insurance and Income Tax.

Mary Aiston, Director of Counter Avoidance, HMRC, said:  

“Tax avoidance schemes are advertised as clever ways to pay less tax when in reality, they rarely work as the promoters promise, and it is the users that end up with big tax bills.  

“Naming tax avoidance promoters is one of the many steps we are taking to disrupt and drive scheme promoters out of business. We want to help ensure customers do not get caught out by tax avoidance.” 

HMRC has now published the details of three tax avoidance schemes and their promoters and will continue to add to this list in the coming months. This is not a complete list of all tax avoidance schemes currently being marketed or a complete list of all promoters, enablers, and suppliers. HMRC recommends steering clear of all avoidance schemes.  

HMRC also recently secured wins in two separate tribunal cases against the tax avoidance firm AML Tax (UK) Ltd, part of the Knox Group. AML Tax (UK) Ltd was successfully challenged over its refusal to provide details of three avoidance schemes, which follows a £150,000 fine for not providing HMRC with required information. 

While one tribunal said that evidence provided by director Arthur Lancaster was ‘inconsistent with the documentary evidence’ and ‘disingenuous’, both lower-tier tribunals ruled AML Tax (UK) Ltd should have disclosed the details of three tax avoidance schemes they promoted, and they could not appeal these decisions.  

HMRC’s Tax Avoidance – Don’t Get Caught Out campaign offers a range of tools to customers to help them steer clear of avoidance schemes, such as the interactive risk checker, payslip guidance, and case studies demonstrating the risks of becoming involved in a tax avoidance scheme and the warning signs customers should look out for.   

Customers who believe that they are involved in a tax avoidance scheme are advised to contact HMRC as quickly as possible by calling 03000 534 226. HMRC is also urging customers who have been encouraged to get into a tax avoidance scheme or have come into contact with someone selling tax avoidance schemes to report these to HMRC. 

The above statement from HMRC ignores the fact that tax avoidance is legal!

Tax does have to be taxing.

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• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

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Government Owes HMRC £263M

It seems that Whitehall departments owe HMRC £263M in unpaid taxes after the Government failed to comply with its own rules for off-payroll workers.

The Public Accounts Committee has lambasted central Government for "widespread non-compliance" with so-called IR35 rules, which require companies to determine the tax status of freelancers and contractors.

Public sector departments owed HMRC £236m in back-taxes for workers wrongly assessed as self-employed for the tax year 2020-21, the committee estimated.

It is quoted by the Telegraph:

"Such widespread non-compliance is not acceptable, particularly as government bodies should be best placed to understand the rules and communicate with HMRC."

HMRC had exacerbated the the situation by "rushing implementation" of the IR35 rules and providing "poor guidance" with no means of appealing a tax status for workers. 

The Public Accounts Committee accused HMRC of having done "little to understand the wider impact of the reforms on workers or labour markets" and warned the taxman had been "too dismissive" of people and businesses reported being adversely affected by the rules. 

Dame Meg Hillier, Labour MP and chairwoman of the committee, said: 

"After years of fiddling with these reforms and with central government spending hundreds of millions of pounds to cover tax for individuals wrongly assessed as self-employed, the fundamental problems underlying UK taxation of work remain.

It is now up to HMRC to demonstrate that the system can work fairly in the real world; to prove that it is correctly claiming revenues under the system and that the additional revenues raised are worth the costs and unintended consequences in the labour market.

While workers in the gig economy have challenged their work and tax status in the courts, there is no recourse for workers deemed subject to IR35 tax rules despite the confusion and non-compliance that persist even in central government itself."

If a contractor or freelancer believes they have been given the incorrect tax status by a hiring company, they can challenge the decision with the business. The company must respond within 45 days, but if it refuses to change its mind the worker has no further route to appeal. 

HMRC said: 

“These reforms have succeeded in making the tax system fairer, with more people who work like employees paying tax like employees, levelling the playing field for everybody else and bringing in the tax that is due under the law."

In other words HMRC isn't listening!

Tax does have to be taxing.

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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 accountant's (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:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

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"