A glitch within the HMRC Self Assessment system glitch-300x300

A glitch within the HMRC self assessment system has meant that some taxpayers were not informed of the amount of tax to pay on account by 31 January 2019 and this problem won’t be fixed before 31 July 2019.

In January 2019, HMRC were experiencing a number of computer errors including the omission of tax demands for payments on account (POA) for 2018/19 from some taxpayers’ statements. This problem applies to the taxpayer’s online personal tax account, as well as to paper statements of account issued by HMRC.

How many are affected?

HMRC recognises that this is a real issue. When contacted for comment on this story a Revenue spokesperson said “We are aware of an issue with payment reminders for a small number of customers. Anyone who is affected should contact us and we’ll put it right. Nobody will be charged additional interest due to this problem.”

However, judging by the number of queries on the HMRC agent forum, this is a widespread problem.

The professional tax and accountancy bodies have complained, and HMRC has apologised to those bodies, but it has made no attempt to tell the affected taxpayers what to do. HMRC has also said it can’t fix the problem of missing POA demands in time for the 31 July 2019 payment date.

No interest

HMRC has confirmed that if the demands for POA have been omitted from the taxpayer’s statement, that taxpayer will not be charged interest as long as full payment of all the tax due for 2018/19 is made by 31 January 2020.

Nearly 1.1 million businesses have yet to register for MTD, according to the results of a Freedom of Information (FOI) request sent to HMRC by cash flow service Float.

Additionally, the data suggests that only 2% of accounting firms have registered any clients for MTD, from an estimated 72,000 tax ‘agents’ nationwide.

Float said that many businesses are “still unaware of MTD or are uncertain of what action needs to be taken to become compliant.” The company added that the MTD registration process is “confusing” and that HMRC have “much more to do to alert businesses to the change in the law”.

1.1 million businesses yet to register for Making Tax Digital (MTD) Making-Tax-Digital-Header-e1523542410732-300x150

If you are VAT registered and would like more information regarding MTD and MTD compliant software then please give us a call on 01242 370298 or email us on  office@wfrancisandco.co.uk

Only Three Days To Go!! hmrc-penalty-2

It isn’t too late, there’s still time to complete your 2018 Tax Return before the deadline of 31 January 2019, to avoid a £100 penalty.

If you require our assistance call us on 01242 370298 or email office@wfrancisandco.co.uk

 

Looks like it's going to be a busy January! keep-calm-and-let-us-file-your-tax-return-257x300

Records show that as at 1st January 2019 47.9% of all the anticipated 2017/18 Income Tax Returns remain to be filed in the final month of the filing period.

That amounts to 4,541,784 Tax Returns and history has shown that approx. 50% of those Returns are going to be filed by Accountants. This has been the case since the inception of Self-Assessment, which means we are going to be incredibly busy throughout January!

It has been confirmed the first ‘wave’ of 20,000 letters to affected businesses will hit doormats this week, followed by a further 180,000 to be issued next week.

If you are unaware, Making Tax Digital (MTD) for VAT is compulsory for all VAT registered businesses for VAT periods beginning on and after 1 April 2019. The requirement to keep digital records starts from this date but the first VAT return for a normal quarterly period, must be submitted by 7 August 2019.

HMRC will be running a social media campaign about Making Tax Digital (MTD) for VAT including Twitter posts and YouTube videos.

Please see the link below for more information regarding Making Tax Digital from HMRC:

https://www.gov.uk/government/news/hmrc-publishes-more-information-on-making-tax-digital

If you would like further information we are here to help! Give us a call on 01242 370298 or email us on office@wfrancisandco.co.uk

 

 

HMRC has published the advisory fuel rates to operate from 1 June 2013.

Advisory fuel rates are HMRC-approved rates which apply where employers reimburse for business travel in their company cars, and where employees reimburse the cost of fuel for private travel in a company car. Using the advisory rates will mean that there is no fuel benefit charge. HMRC will also accept the figures in the table for VAT purposes, though employers will need to retain receipts.

Engine Size

Petrol

LPG

1400cc or less

15p

10p

1401cc to 2000cc

17p

12p

Over 2000cc

25p

18p

Engine Size

Diesel

1600cc or less

12p

1601cc to 2000cc

14p

Over 2000cc

18p

The new rates apply to all journeys on or after 1 June 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.