ReesRussell

18/10/2024

Life now seems to be full of scams - one that seems to be doing the rounds in my profession is the firms promising to get tax rebates for people. This was done by making bogus work expense calims for peopel and getting refunds.

As of 14th of this month HMRC are now insisting on evidence for claims and claims to be made (currently in writing only) using form P87. There is also a suggestion now in this world of hybrid working that to claim any home expenses for working from home you need to demonstrate an employment contract that requires you to do so.

27/04/2023

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20/12/2022

So the MTD Saga continues - This is HMRC's latest news


Dear customer,
I’m writing to let you know that yesterday the UK Government announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will now be mandated starting from April 2026, rather than from April 2024.

The UK Government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA for the self-employed and small landlords represents a significant change for taxpayers, you as agents, and for HMRC.
That means it is right to take the time needed to work together to implement MTD well, maximise the benefits derived from it, and test and learn as we go.
We will continue to work with you to prepare for the transition to MTD for ITSA, including the testing of the service to ensure that it works for taxpayers and you as agents. You can continue supporting your clients now, by helping them keep digital records and preparing them to sign up ahead of mandation.
I know that speculation last week may have caused you concern and frustration, and providing certainty at the earliest opportunity has been a priority for us. I hope that this update gives you further clarity.
The details announced yesterday, which may be of particular interest to you, include:
• from April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required (mandated) to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software
• those with an income of between £30,000 and up to £50,000 will need to do this from April 2027

• we anticipate that most taxpayers within the scope of MTD for ITSA will be able to sign up voluntarily before they are mandated to do so
• the UK Government will not extend MTD for ITSA to general partnerships in 2025. The government remains committed to introducing MTD for ITSA to partnerships at a later date, to be confirmed
• the UK Government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions. This will look in detail at how the MTD for ITSA service can be shaped to meet their needs and the best way for them to fulfil their Income Tax obligations. Once that review is complete – and in consultation with businesses, taxpayers, agents, and others – the UK Government will lay out the plans for any further mandation of MTD for ITSA

Thank you for your continued support in preparing your clients for MTD for ITSA.
Yours faithfully


Jim Harra
Chief Executive and First Permanent Secretary – HMRC

25/06/2022

When the covid pandemic support in the form of furlough led to 215,000 small company owners to sign a petition to have their dividend payments considered for furlough support we advised our clients not to do so. It is our understanding now that those signatories mat now be followed up by HMRC on the basis they were contending that they considered their dividends as remuneration. There has been for many years legislation in place to assess dividends to national insurance when the dividend is in the nature of remuneration. To date it has only been used in liquidation cases following company sales.

If you signed then it vould come and bite you.

There are always risks with choices and at ReesRussell we try to point out opportunities but at the same time highlight risks.