Tax officials have told the charity sector that it will not be penalised for non-compliance with Making Tax Digital in the 12 months after its launch. Continue reading HMRC confirms one-year grace period for charities using Making Tax Digital
In recent days, the Department for Environment, Food & Rural Affairs (Defra) has announced that iconic peatlands across the UK will be able to benefit from £10 million worth of grants. Continue reading £10 million worth of grants announced to restore peatlands
In recent days, HM Revenue & Customs (HMRC) has said that its flagship Making Tax Digital (MTD) project will “continue at pace and as planned,” after concerns recently emerged that aspects of MTD would be delayed due to Brexit. Continue reading Making Tax Digital to ‘continue at pace and as planned’
A recent study has found that the UK has retained its place in the top three of the world’s most competitive tax regimes despite uncertainties around Brexit. Continue reading UK business tax regime still attractive to foreign business
A group of 56 MPs from a number of different parties have called on the Government to improve rural connectivity and ensure that rural areas can be connected via 4G. It is estimated that, if 4G is this does happen, the UK’s Gross Domestic Product (GDP) could benefit from an extra £75 billion. Continue reading Calls to eradicate ‘not-spots’
Recent changes to legal sector accounting have delivered a “greater focus” on issues of genuine concern, according to the Solicitors Regulation Authority (SRA). Continue reading Accounting changes are a success in legal sector
Tax bodies such as the Association of Taxation Technicians (ATT) suggest that taxpayers could lose their personal allowance or end up paying tax twice because of early cracks in digital tax systems. <1--more-->
HM Revenue & Customs (HMRC) introduced ‘dynamic coding’ in 2017, which means that tax codes are updated throughout the year, rather than at year end, in a bid to address any under or overpayments.
This was meant to be an advantage for taxpayers, as the system should have reduced instances of overpayment as it allows for any adjustments to be made immediately.
However, if someone receives a large bonus early in the year, the system uses that as an average for the year and massively overestimates the person’s annual income. If that figure is more than £100,000, then their tax-free allowance would be reduced or eliminated entirely.
While there has always been a potential problem with paying income tax, using dynamic coding means that the problem arises instantly rather than at the end of the year. If a taxpayer is affected at any point in the year, they need to log on to their online personal tax account and suggest a change to their estimated income.
Meanwhile, another potential problem for taxpayers is they could be at risk of being billed twice. For example, someone who underpaid tax in 2017-18 because they changed jobs will have already repaid the tax.
However, if that person then needs to declare additional income, their tax-return could be pre-populated by HMRC and include the underpayment. If the taxpayer does not correct this, they could end up paying twice.
A former Chief Executive at Age Concern has been convicted of stealing more than £700,000 during an eight-year fraud. It was uncovered after a financial manager spotted a supporting document for a fraudulent payment and a forensic investigation was set in motion. Continue reading Investigation uncovers eight-year fraud
The Charity Commission has revealed that nine statutory inquiries were opened in 2017, investigating charities that had submitted accounts only after they were forced to. Continue reading Charity Commission publishes report on charity inquiries
A recent study has found that UK businesses are continuing to contribute significantly towards Government revenues, with £186 billion in business taxes being paid in 2017/18, accounting for 27 per cent of the total tax take. Continue reading The business tax contribution