This summer HMRC have announced their intention to target and track down potential tax evaders by locating their businesses on the internet.
Web traders using online market places such as Ebay may soon find themselves within HMRC sights. They intend to use Web Bots to assist them in their scrutiny.
However, there will be some criteria as to what amounts to taxable trading. People selling their own possessions will not be counted as trading, but anyone buying in goods for the purpose of resale will be examined. This is even in the instance of traders purchasing reduced sale items to resell.
If you think you are potentially likely to be affected please give us a call to discuss this issue. Tel: 01225 751302.
Higher rate tax payers looking to invest may consider National Savings and Investments index-linked savings certificates.
These have been very popular in the past, and it was this popularity that saw their sales suspended in July last year. Banks and Building Societies appeared to be unhappy that savers’ cash were heading away from their products towards NS&I certificates.
The new NS&I certificates are not as good as the previous version, with tigher limits on the amount invested and terms. However, the tax free status of NS&I index-linked bonds will still be attractive to higher-rate tax payers.
These statements are usually issued from HMRC in July, for the payment deadline of 31st July 2011.
However, as the number of statements to be issued has increased, and (rumour that HMRC ran out of headed paper) this has caused a delay, with some of our clients have not receiving theirs until August.
Late payments normally incur interest charges on the outstanding amount after the July deadline. However, for clients receiving their statements in August, HMRC have arranged not to charge interest as long as tax owed is paid before 27th September.
For further information please see: http://www.hmrc.gov.uk/news/delay-sa-statements.htm