HM Revenue & Customs (HMRC) has issued updated guidance for subcontractors operating as limited companies on reclaiming any deductions taken from their payments under the Construction Industry Scheme.
Monday, 10 September 2012
Firms ‘at risk on insurance cover’
New research has shown that more than a third of UK small or medium enterprises (SMEs) could be putting their business at risk by failing to insure their key staff.
The latest RSM Tenon Business Barometer, a quarterly survey carried out by YouGov amongst senior management in SMEs, found that 42 per cent had failed to insure key staff.
Retailers hit by £205m e-crime bill
A pioneering study of e-crime has revealed that e-crime cost UK retailers at least £205.4 million in 2011-2012.
The first e-crime study from the British Retail Consortium, published on 22 August, found that the bill included £77.3 million in losses from frauds themselves as well as prevention costs and legitimate business lost as a result of those measures.
Keep HMRC informed, warns business group
An organisation representing small businesses has warned entrepreneurs to fully update HM Revenue & Customs (HMRC) about any changes to their operations, following a report that one firm is facing a £10,000 fine for not telling HMRC it had changed its name.
The Forum of Private Business revealed on 9 August that the firm, which did not want to be identified but which has always made VAT payments and submitted tax returns on time, was originally hit with a fine of more than £30,000 under VAT notification liabilities contained in the Finance Act 1985 and the VAT Act 1994.
The fine was imposed after the business changed from a partnership to a limited company – adding a ‘ltd' to its name – without informing HMRC, even though it retained its old VAT number and HMRC received all the tax due.
The fine has been reduced to just over £10,000 after intervention by accountants and the forum’s tax adviser Andrew Needham, with work continuing to further reduce the penalty.
Mr Needham said: “I am concerned that this is a change in HMRC's long-standing policy of waiving its technical ability to impose this penalty fine in such circumstances.
"If this is carried through and sets a precedent it could result in huge fines being imposed on small businesses which, in reality, have done very little wrong.
"It is important that all small businesses are aware they could face steep fines unless HMRC is kept fully updated – but this heavy-handed approach is the very opposite of the support that is
desperately needed at this difficult time."
Mr Needham highlighted a House of Commons debate in July 1986 on the legal clause to protect small traders making innocent mistakes from recently introduced fixed VAT penalties, a clause which was subsequently included in the legislation.
The forum is urging all small business owners to contact its Public Affairs team about their experiences of HMRC – including if they have received fines they feel are unfair or disproportionate. They can contact the forum at 01565 626016 or email publicaffairs@fpb.org
Contractors ‘could cut SME tax bills by £2bn’
Businesses could slash their tax bills by up to £2 billion by using self-employed contractors, according to professional advice website unbiased.co.uk
1 in 3 businesses not aware of RTI, research finds
One-third of small businesses are not aware of Real Time Information (RTI) and how it will affect their PAYE systems, according to new research.
Business software specialist Sage surveyed 1,100 UK SMEs and found that 64 per cent were aware of the changes that will come into effect in April 2013. However, only one in ten questioned thought that RTI would be good for their business.
Taxpayers count £1,200 cost of failing to file returns
Around half a million people who have not yet submitted 2010/11 tax returns to HM Revenue & Customs (HMRC) are now receiving additional penalty letters.
The number of outstanding returns almost halved in 2012, falling to 5.9 per cent of those due compared to 10.7 per cent in 2011. As a result, 518,000 fewer penalties are being issued.
Tuesday, 10 July 2012
‘Good compliance’ the priority on cookies law, says regulator
Businesses and other organisations operating websites have been told that regulators want “good compliance, not rushed compliance” with a law requiring them to gain visitors’ consent before logging information about them.
Last year, the government revised the Privacy and Electronic Communications Regulations to address new EU requirements, and these came into force on 26 May 2011. The UK’s Information Commissioner’s Office (ICO) allowed businesses and other organisations a year-long period to work towards compliance with changes, which ended on 26 May.
UK to get world-class creative tax breaks
The UK’s creative industries are set to benefit from tax reliefs that are among the most generous in the world, according to the government.
It has published a consultation on measures announced in the 2012 Budget, introducing tax reliefs targeted at animation, high-end TV and video games production.
Rules on large redundancies set for shake-up
Proposals that could cut the length of time employers have to consult with their employees on large scale redundancies by up to a third have been published by the government.
The new measures, outlined in a consultation launched by Employment Relations Minister Norman Lamb on 21 June, are designed to improve the ability of companies to respond to changing economic conditions and the quality of the collective redundancies process.
Anti-abuse tax rules set to include IHT
Inheritance tax (IHT) is set to be included in new anti-abuse rules designed to tackle tax avoidance schemes.
The government launched a consultation on the proposed General Anti-Avoidance Rule (GAAR) on 12 June, which would apply to the main direct taxes and national insurance. It also proposes an extension of the rule to inheritance tax.
Tuesday, 12 June 2012
UK firms must prepare for eurozone crisis, say accountants
A leading accountancy organisation has warned that the majority of UK businesses have no contingency plans in place in response to the economic turmoil in the eurozone.
Monday, 11 June 2012
New IR35 guidance comes under fire
New HM Revenue & Customs (HMRC) guidance to clarify the risk of contractors being caught by the IR35 intermediaries legislation has been attacked as a missed opportunity.
Justice reforms good for business, says minister
Justice Minister Jonathan Djanogly has highlighted how the government is helping businesses to “get on with the job” by reforming the justice system.
Monday, 14 May 2012
Apps aid record-keeping on the go
Commercial software businesses, following consultation with HMRC, have developed the apps for businesses below the VAT threshold.
HMRC said: “These applications may help with maintaining good records and include links to HMRC guidance related to record keeping. The majority of these applications are free.”
It has now published a list of companies providing apps for record keeping that meet HMRC specifications, although it stressed it had not tested any of the apps or carried out any security testing on these.
HMRC added: “This list is not exhaustive and it is probable that other software houses associated with mobile application development will also be developing applications.
The list, published on 16 April, will be updated as necessary on a regular basis.
If you want more information then please contact accountants in Lichfield.
Link: HMRC companies providing record-keeping apps
Businesses urged to step up IT security
A new survey says that IT security breaches are costing the UK economy billions of pounds a year.
A total of 447 businesses were quizzed for the 2012 Information Security Breaches Survey (ISBS), carried out by PwC in conjunction with Infosecurity Europe and supported by the Department for Business, Innovation and Skills. Key findings of the survey, released on 24 April, included:
- 93 per centof large organisations and 76 per centof small businesses had suffered a security breach in the last year
- one in seven large organisations had been hacked in the last year, the highest level recorded since the survey began in the early 1990s
- on average, each large organisation suffered 54 significant attacks over the year. Small businesses experienced an average of one attack a month
- the average cost of a large organisation’s worst security breach of the year was £110,000-£250,000 and £15,000-£30,0000 for a small business.
- on average, organisations spend eight per cent of their IT budget on information security but 20 per cent spend less than one per cent.
Chris Potter, PwC information security partner, said: “The cost to UK plc of security breaches is running into billions every year. Large organisations are more visible to attackers, which increases the likelihood of an attack. However, it is also true that small businesses tend to have less mature controls, and so may not detect the more sophisticated attacks.”
Universities and Science Minister David Willetts, whose responsibilities include cyber security issues, said the government was investing £650 million to improve cyber security. He added: "The UK is a world leader in doing business online. This survey is a timely reminder for UK businesses to make sure their information systems are protected.”
Meanwhile, the Information Commissioner’s Office (ICO) has published new guidance on securely deleting information from old computer storage devices.
At the ICO’s request, computer forensics company NCC Group sourced around 200 hard drives, 20 memory sticks and 10 mobile phones, buying them mainly online from internet auction sites and some from computer trade fairs.
When searched, a total of 34,000 files containing personal or corporate information were recovered. At least two hard drives contained enough information to enable someone to steal the former owner’s identity and four others contained information about the employees and clients of four organisations, including health and financial details.
Information Commissioner Christopher Graham said: “People are in danger of becoming a soft touch for online fraudsters simply because organisations and individuals are failing to ensure the secure deletion of the data held on their old storage devices.”
The ICO guidance, published on 25 April, is designed to help individuals securely delete information. It will publish more detailed guidance for organisations shortly.
Mental ill health ‘costs 91m lost work days’
Employment relations specialist Acas has launched a new guide to tackle what it describes as the last taboo in business - mental illness at work.
According to the Centre for Mental Health charity, a total of 91 million work days are lost to mental ill health every year although the lost days account for only half the £30 billion annual cost of reduced productivity. The remainder are due to employees coming to work when unwell and not performing at their best.
Acas chief executive John Taylor said: “Many employers and managers shy away from dealing with mental illness at work because it can be hard to pin down and it is a very sensitive matter to deal with.
"But we all need to develop a new way of looking at mental health and break down the taboo. There needs to be a willingness to discuss mental health and a culture where employers understand it and try to help their employees recover from mental illness.
"Our mental well-being is as much a part of health as our physical health. And we need to take into consideration that one in four of us will suffer a mental health problem at some point in our lives."
Advice for employers in managers in the Acas guide includes how to:
- spot early the signs of mental ill health
- raise awareness of mental health issues among managers and staff
- approach an employee who may have a mental health condition
- try to help them cope with it or overcome it so they can work effectively again.
Mr Taylor said employers and managers could help by identifying aspects of working life they can assist with, such as workloads, communication, bullying and strategies for the employee to cope at work.
He added: "There can be circumstances outside an employer's control, such as childhood experiences, family relationships, addiction problems and bereavement. However, an employer, by creating a supportive environment at work where people feel able to disclose their problems, can help them address their issues and remain productive at work.
"Also, there may be times when an employer will need to refer an employee to outside, specialist sources for help and advice."
Acas has compiled the guide with NHS agency Workways, which specialises in advising on dealing with mental ill-health at work.
£40m boost for hi-tech businesses
UK hi-tech small and medium-sized enterprises with high growth potential are set to benefit from at least £40 million of investment from a new Enterprise Capital Fund.
Notion Capital, which is backed by private investors, the government and the European Investment Fund, will target businesses delivering internet-based services, including cloud computing and software as a service (SaaS) companies.
Launching the fund on 17 April, Business and Enterprise Minister Mark Prisk said: “It is absolutely vital that ambitious small firms can access the finance they need to expand and grow, and this new Enterprise Capital Fund will provide at least £40 million of funding to viable UK high-tech businesses.”
Enterprise Capital Funds use government funding alongside private sector investment to address the equity gap that arises where businesses with viable investment propositions cannot attract investment from informal investors or venture capitalists.
Notion Capital, which has a pan-European focus, will invest at least £40 million in the UK. The government has committed a total of £200 million to the Enterprise Capital Fund programme in the four years up until 2014/15.
E-traders urged to set tax records straight
People trading on the internet who haven’t paid all the tax they owe are being invited to come forward and pay up under a new HM Revenue & Customs (HMRC) campaign.
The e-Markets Disclosure Facility will allow online marketplace traders to pay the tax they owe and benefit from lower penalties, rather than waiting for HMRC to catch up with them.
Online marketplace traders have until 14 June to tell HMRC that they want to make a voluntary tax disclosure. They then have until 14 September to tell HMRC about tax due and make arrangements to pay any tax interest and penalties they owe.
If they make a full disclosure of what they owe before 14 September, some e-traders will receive no penalty at all. Most will receive a penalty of no more than ten per cent of the tax owed.
After that date, using information collated from different data sources, HMRC will investigate those who have failed to respond. Those who are found to have unpaid tax liabilities will face higher penalties of up to 100 per cent of the tax unpaid or, potentially, criminal prosecution.
Marian Wilson, head of HMRC Campaigns, said the initiative people using online marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed.
She added: “Those who only sell a few items and who are not traders are unlikely to be liable to pay tax on what they sell and will not be targeted by this campaign.
“Our aim is to make it easy for online traders to contact us and make a full disclosure of income, thereby putting their affairs in order.”
Marian Wilson, head of HMRC Campaigns, said the initiative people using online marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed.
She added: “Those who only sell a few items and who are not traders are unlikely to be liable to pay tax on what they sell and will not be targeted by this campaign.
“Our aim is to make it easy for online traders to contact us and make a full disclosure of income, thereby putting their affairs in order.”
More than £500 million has been raised by HMRC from voluntary disclosures, and a further £105 million from follow-up activity. Previous campaigns have targeted offshore investments, medical professionals, plumbers and VAT defaulters.
A YouTube video is available giving guidance to people wondering whether their buying and selling on an e-marketplace website can be seen as trading can be viewed at: http://www.youtube.com/watch?v=uptdjVD2LgI
Panel targets ‘daft’ health and safety decisions
Office workers being banned from putting up Christmas decorations and trapeze artists being told to wear hard hats are among a top ten of myths published as part of the launch of a new service to help curb the worst examples of health and safety misuse.
The Health and Safety Executive (HSE) will run the Myth Busters Challenge Panel, which will provide quick advice to businesses and individuals querying the validity of health and safety decisions.
The panel, which was launched on 11 April, will separate decisions that genuinely protect people from real risks from those not required in health and safety law. The panel will be supported by a pool of independent members representing a wide range of interests, including those of small businesses.
Minister for Employment Chris Grayling said: “All too often, jobsworths are the real reason for daft health and safety decisions.
“Common sense is the key to successful health and safety. The Myth Busters Challenge Panel will advise people where they think local authorities, insurance companies or schools have got it wrong.
Judith Hackitt, chair of the HSE and the new panel, said: “Over the years we’ve seen health and safety invoked – wrongly – in defence of some pretty absurd decisions.”
She said that such decisions undermined confidence in the real task of health and safety, which is to manage serious risks to life and limb in Britain’s workplaces.
The HSE’s top ten health and safety myths are listed below.
- Children cannot play conkers unless they wear goggles.
- Office workers banned from putting up Christmas decorations.
- Trapeze artists told to wear hard hats.
- Pin the tail on the donkey games deemed a health and safety risk.
- Candy floss on a stick banned in case people trip and impale themselves.
- Hanging baskets banned in case people bump their heads on them.
- Schoolchildren ordered to wear clip on ties in case they are choked by traditional neckwear.
- Park benches must be replaced because they are three inches too low.
- Flip flops banned from the workplace.
- Graduates ordered not to throw their mortar boards in the air.
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