Something that will cheer us all up!

[Dagmar]

NOT

 

HMRC will acquire powers in 2009 to enter business premises and private homes used for business. For errors that are "careless, but non-deliberate", penalties of up to 30% of an unpaid tax bill can be levied. Fines worth 70% of the final tax bill could be imposed, should officials believe the taxpayer deliberately ignored the need to make a payment. Deliberate concealment could trigger fines worth 100% of the final tax bill.

These new powers will come into effect on April 1 2009.

Tax officers will gain powers to inspect and remove information and documents, while the Treasury will limit the amount taxpayers can reclaim in wrongly paid tax from six to four years. Income tax, capital gains tax, VAT and stamp duty tax will be among payments covered by the new regime. Fines can be imposed from March 2009 on tax bills calculated from March 2008.

 

I don't see much about having to prove anything here - if the inspector says that your on the fiddle then its "pay up chummy", if you make a mistake its a fine and I bet that anyone dealing in cash or a sunstantial part of the business is cash are going to come under special scrutiny.

 

 

The emphasis are mine

[acer]

I dont deal with the tax man, I only work in cash Im a small time player in a good week maybe I take home 400, and some weeks I have no work lined up. They surelly wont spend time looking for me, dont even use a bank, always on me that's how I work

[Arborlord]

Oh look i wonder what greedy c???t thought that one up.

 

With the credit crunch trust me when i say they will not have the staff to deal with the 20 or so million people in the fire line of this one.

 

What will happen which i like is thats 20 million votes to remove these arsssssss hollleeess from power.

 

They will keep squeezing untill a sodding revolution were hitting braking point with low wages gas electric food petrol and now tax its just only going down one road.:thumbdown:

 

Im voting...........

[treequip]

I object to paying taxes because I don’t think they spend the money on the right things but I do like to see the powers that be catching those that don’t pay their share.

 

Fiddling tax is fiddling all of us.

 

This legislation is not quite as bad as it looks. HMRC are already able to levy penalties for other offences and the entering buildings thing was ever thus except that they need a warrant.

 

This legislation tightens their grip on your wallet by making sure you keep tidy, proper records. Until now an untidy shop with some “accidental errors” in your favour often resulted in nothing more than a stiff talking to and a demand for unpaid tax.

 

They will now be able to levy a meaningful penalty on offenders. They will be able to enter premises and examine records which will also now include taking your computer if it was used to prepare those records, without the bother of going to the courts for a warrant.

 

All of this is of course moot if you keep decent records.

 

Andy.

[Andy Collins]

I too dont have an issue with this, HMRC already have greater powers than the Police service, and if they wish to investigate you, then they will anyway. The bit that perturbs me is that in the HMRC eyes, you are assumed guilty til proven innocent, which is contrary to British law. Until 2 years ago, I didnt employ an accountant, I wish I had, now they are paid to deal with the hassle.

[Buzz]

Unless your accountant cocks up Andy ! They are not legally liable for errors either. A get out of jail free card so to speak.

My mates accountant made an error and it cost him 6k in unpaid VAT

[stoxs]

Unless your accountant cocks up Andy ! They are not legally liable for errors either. A get out of jail free card so to speak.

My mates accountant made an error and it cost him 6k in unpaid VAT

 

Should that not say My mates EX accountant?

[conkers]

I have always been scared to death of the whole tax colecting scam.

I am not an accountant so I employ one.

I was recently investigated on some minor point in order for them to squeeze some money out of me and I ended up with a cheque for overpayments:001_tongue:

 

I would strongly advise anybody with a turnover of over 20k to use an accountant. It does not let you off the hook but it is less likely they will bother you, as chartered accountants are duty bound to inform of any wrong doing. If you are legit anyway:ohmy:

[Quickthorn]

NOT

 

HMRC will acquire powers in 2009 to enter business premises and private homes used for business. ..

Tax officers will gain powers to inspect and remove information and documents, while the Treasury will limit the amount taxpayers can reclaim in wrongly paid tax from six to four years. Income tax, capital gains tax, VAT and stamp duty tax will be among payments covered by the new regime. Fines can be imposed from March 2009 on tax bills calculated from March 2008.

 

I don't see much about having to prove anything here - if the inspector says that your on the fiddle then its "pay up chummy", ..

 

As far as I know, Customs & Excise have always had the power to simply enter your home. They were the only branch of government that could do that..even the police need a warrant before bursting in (although recent terror legislation may have changed that).

 

According to some areas of the press: before they were merged with the Inland Revenue, C&E could be very heavy handed when investigating VAT, and were happy to carry out extra-judicial punishment of businesses they thought might be defrauding the system. One example which hit the press was that of a dry cleaning business, who they suspected of under reporting income to avoid some of their VAT. They worked out what they thought the business owed them (a huge figure) and sent them the bill. Knowing that the business would not be able to pay, they then applied for a winding up order on the basis that the business was bankrupt..caused by the bill they had received from C&E! Basically, they shut this place down without the owners ever having the chance to defend themselves in court, because no criminal charges were ever brought.

 

Because of tricks like this, and heavy handed enforcement at ports on holidaymakers returning with duty free, it was thought that C&E had got a little bit out of control, and hence the merger with the Revenue, to calm them down a bit. Unfortunately, it looks like the C&E approach might have spread to the Revenue, rather than the other way around.

[Mr Ed]

Because of tricks like this, and heavy handed enforcement at ports on holidaymakers returning with duty free, it was thought that C&E had got a little bit out of control, and hence the merger with the Revenue, to calm them down a bit. Unfortunately, it looks like the C&E approach might have spread to the Revenue, rather than the other way around.

 

I have a mate that works for HMRCE. He told me that the 'old guard' at HCE resisted the merger with the Inland revenue tooth and claw. Quite a few high ups had to be pensioned off before the merger went through. They liked the power they held, and were pissed off at the thought of having their wings clipped.

I think they are a lot better now, at least you can talk to them, and it takes at least a year of non payment before they will wind up a company.