Crackdown launched on tax dodgers

Over 30m will be recovered from tax dodgers as HM Revenue & Customs launches new taskforces around the country. The Taskforces will target traders who do not pay the right amount of tax in:

Taxman’s New Targets

HM Revenue & Customs is creating three new ‘taskforces’ to uncover tax evasion among taxi-drivers, street market traders and buy-to-let landlords. It is part of a recent crackdown on ‘hotspots’ identified across Britain by HM Revenue & Customs the aim of the taskforces is to raise an additional £7bn each year by 2014/15. It has so far recovered £50mn in 2012. David Gauke, the Exchequer Secretary, said: “We have made it clear that we will not tolerate tax evasion – everyone needs to pay the taxes they owe in full. We are determined to crack down on the minority who choose to break the rules.”

HM Revenue & Customs; Hammering down on Auction Sites

HM Revenue & Customs (HMRC) is bidding to gather as much information as possible from online auction sites, about online traders, as part of its e marketplace campaign.

The advantages of cash-basis accounts

In the budget the Chancellor announced the introduction of simplified tax rules for business accounts. Will you be entitled to use these and, if so, what will they offer in the way of tax advantages?

Directors’ Liability

Fire(personally) costs director £180,000.

Landmark ruling. In 2008, a fire broke out at The Chumleigh Lodge Hotel Ltd. Subsequently, local fire inspectors visited the premises and identified twelve breaches of the Regulatory Reform (Fire Safety) Order 2005 (FSO). They included a failure to : (1) have a suitable and sufficient fire risk assessment; (2) fire smoke alarms where required; (3) keep escape routes clear; and (4) provide staff with adequate fire safety training. They prosecuted the company and its sole director; Michael Wilson, who was ultimately responsible for any offences under the FSO. He pleaded “not guilty”, but was later personally fined £180,000 and ordered to pay a further £50,000 costs. In addition, the company was hit with a £30,000 fine. This ruling is harsh, but it sends a clear message that your fire safety responsibilities must never be ignored.

Source: Indicator Ltd

Creditworthiness not credit ratings

The board has decided to change one of its key suppliers. As part of the process the company had to complete an “application for credit”. Is this something you should be doing for your new customers?

Revised and updated Public Notices

The following Public Notices have been updated:

• VAT Notice 708 – Building and construction
• VAT Notice 700/64 – Motoring expenses
• VAT Notice 700/65 – Business entertainment
• VAT Notice 700/56 – Insolvency
• VAT Notice 700/17 – Funded pension schemes
• VAT Notice 709/1 – Catering and take away food

Notice 161. Investigation into traders with suspected serious indirect tax irregularities

This revised Notice explains what happens during a civil investigation if the VATman suspects there are serious indirect tax irregularities due to conduct involving dishonesty. It only applies to cases where the VATman suspects knowing involvement in transactions that form part of a Missing Trader Intra-Community (MTIC) fraud. This cancels and replaces Notice 161 (January 2009).

Further guidance following the Paymex tribunal decision

The VATman has now accepted that the Paymex decision extends to Company Voluntary Arrangements (CVAs), Partnership Voluntary Arrangements (PVAs) and Trust Deeds in Scotland as well as Individual Voluntary Arrangements (IVAs). These are now considered to be exempt from VAT.

Source: Indicator Ltd