In 1996 self-assessment was introduced and since then HMRC staff members have been trained to develop investigatory skills. Certain developments over the last year suggest that tax investigations are likely to continue to rise.
With HMRC signing information agreements in Europe they now have access to an increasingly wide pool of information and tax evaders will have difficulty hiding. HMRC have given opportunities for people and businesses to come forward about their tax affairs but, those who choose not to are likely to see investigations into their financial affairs.
Tax investigations are becoming increasingly inevitable but there are some things you can do to limit the problems:
- keep good financial records
- co-operate as penalties can vary depending on your co-operation
- seek advice
- take out insurance
Roger Hann
Practice Manager
023 8046 1200
roger.hann@hwb-accountants.com
I have worked with a number of clients recently on the Enterprise Investment Scheme and looking into client's future plans in more detail makes me wonder if saving in a pension scheme is actually the most beneficial way to save for their future.
The Government provide us with benefits such as income tax relief on contributions into a pension scheme, tax efficient growth within the scheme and of course a lump sum on retirement and although these are still in place, with the withdrawal of higher rate tax relief on some pension contributions, the complicated new anti-forestalling provisions and the introduction of the 50% tax rate from April, clients may not get as much of a benefit from their pension scheme as they planned.
ISAs, EIS and VCT would all make viable alternatives to the basic pension scheme and if managed well, could make planning my client's future much more rosy.
Richard Hurst
Director
023 8046 1200
Business rates are currently a key area of activity with sharp increases in rateable values reported by many business owners already facing cash flow challenges. It's often difficult and time-consuming for a busy business to research ways of reducing overheads and then implement the changes.
The new rates come into effect on 1 April 2010 and speed is of the essence.
I was recently reviewing a clients' overheads where £4000 was being spent on office supplies per annum alone. After speaking with our Expense Control team and putting them in touch with the Purchasing Pool Partners, we were able to cut this by half - it certainly pays to "compare the market". I would suggest any overhead expenditure over £3000 per annum is worth assessing to check if you are getting the best price. Any business that accepts it probably does not have the resource, relationships or product expertise to keep costs to a minimum would benefit from this service.
Alan Williams
Managing Director
For more information follow this link:
Expense Control
