HMRC has recently expanded the scope of taxpayers who can arrange a payment plan online. What are the new parameters and conditions?
HMRC has recently expanded the scope of taxpayers who can arrange a payment plan online. What are the new parameters and conditions?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
Simple assessment is used by HMRC where you have unpaid tax, e.g. from your state pension, that can’t be collected via PAYE, but don’t meet the criteria for a full self-assessment. Where applicable, you receive a letter from HMRC showing a basic calculation which you can then check and contact the department if the figures are wrong.
The general payment deadline is the same as for self-assessment, i.e. 31 January following the end of the tax year (or three months from the date of the letter if issued after 31 October). However, a time-to-pay arrangement can be agreed online, i.e. without needing to call and explain the circumstances, in some cases. The parameters for amounts due under simple assessment have recently been expanded. Now, an online application can be made where:
- the tax due is between £32 and £50,000; and
- you do not have any other payment plans or debts with HMRC.
To apply, you need to access the self-service part of your personal tax account via the Government Gateway.
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